MONTHLY FACT SHEET November 2003

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MONTHLY FACT SHEET November 2003 Powered By Docstoc
					Franklin Templeton
MONTHLY FACT SHEET : November 2003
     Contents


Market Update                                  4   Templeton India Income Fund (TIIF)                 22


Franklin India Bluechip Fund (FIBCF)           5   Templeton India Income Builder Account (TIIBA)     23


Templeton India Growth Fund (TIGF)             6   Templeton India Income Builder Account (TIIBA) -
                                                   Institutional Plan                                 24
Franklin India Prima Plus (FIPP)               7

                                                   Templeton Monthly Income Plan (TMIP) -
Franklin India Prima Fund (FIPF)               8
                                                   Monthly & Quarterly Dividend Plan                  25

Franklin India Growth Fund (FIGF)              9
                                                   Templeton Monthly Income Plan (TMIP) -
                                                   Half-Yearly Dividend & Growth Plan                 26
Franklin India Taxshield (FIT)                10


Franklin India Index Fund (FIIF)/                  FT India Monthly Income Plan (FTIMIP)              27

Franklin India Index Tax Fund (FITF)          11
                                                   Templeton India
FT India Index Fund (FTIIF)                   12   Government Securities Fund (TGSF)                  28


Franklin Infotech Fund (FIF)                  13   FT India Gilt Fund (FTIGF)                         29


Franklin FMCG Fund (FFF)                      14   Templeton Floating Rate Income Fund (TFIF)         30


Franklin Pharma Fund (FPF)                    15
                                                   Templeton India Short-Term Income Plan (TISTIP)    31

Franklin Internet Opportunities Fund (FIOF)   16
                                                   Templeton India Treasury
                                                   Management Account (TITMA)                         32
FT India PE Ratio Fund (FTIPERF)              17

                                                   Templeton India Liquid Fund (TILF)                 33
FT India Asset Allocation Fund (FTIAAF)       18


FT India Balanced Fund (FTIBF)                19   Templeton India Money Market Account (TIMMA) 34


Templeton India Pension Plan (TIPP)           20   Franklin India International Fund (FINTF)          34


Franklin India Balanced Fund (FIBF)           21   Dividend/Bonus History                             35
              Market Update

    Equity Market Snap Shot

          Global markets witnessed profit booking during the month on perception that          Fixed Income Market Snap Shot
    the good news was already priced in and on the back of exogenous issues such as
    geopolitical concerns, falling US dollar and rising trade tensions. However, positive
                                                                                                    FACTORS                                 Short Term               Medium Term
    economic data out of US and various regions helped markets rally strongly towards
    the end and the MSCI World Index gained 1.38% for the month. The fall in the dollar                                                    (1-3 months)              (3-6 months)
    coupled with regional concerns resulted in the broad MSCI Asia Pacific Free Index               INFLATION
    losing 2.81%, with Japanese markets in particular witnessing sharp selling. Despite              Inflation numbers fluctuated around the 5% mark and had an impact on the
    the strengthening Euro, European markets rallied on increasing business confidence         sentiment in the debt markets. Annual wholesale inflation (WPI) rose to 5.12% in the
    among the leading regional economies and the pan-European FTSE Eurotop 100                 week ended November 15 on the back of a increase in the price indices of all the
    added 1.06% during the month. In US, markets witnessed consolidation, with the             major groups-primary articles, fuels and manufactured products. We expect inflation
    exception of technology shares that rallied on expectations of increased tech              to fall in the first quarter of 2004. The less widely tracked consumer price index (CPI)
    spending going ahead. The month saw an improvement in various economic                     rose to 3.29% in October compared to 2.89% in September.
    indicators, but gains in the markets were muted on profit booking. The Dow Jones
    lost 0.19%, while the tech heavy Nasdaq moved up by around 1.45%. Employment                    MONEY SUPPLY
    data including non-farm payrolls along with surveys of the manufacturing and                    Persistent central bank intervention in the forex markets and increased
    services sectors will be closely watched for hints that economic recovery is robust        government spending resulted in easy liquidity. Conditions eased further during the
    enough to support the run-up in stock prices this year.                                    second fortnight of the month on account of coupon and redemption inflows. Excess
          Domestic markets experienced volatility during the month on account of various       liquidity was reflected in significant amounts received by RBI in daily LAF repo
    issues including concerns about FII flows and a slew of risk management measures           auctions, which averaged in excess of Rs.20,000 crores. The WMA surplus being
    by NSE. The start of the month saw the Sensex cross the 5000 mark only to fall due         run by the government, FII flows and NRI remittances would help in maintaining
    to these sentiment dampeners. The ad-hoc margins imposed on brokers by NSE                 liquidity in the system.
    along with other measures impacted markets, which witnessed selling. The pace of
    FII inflows slowed, raising concerns of year-end profit booking during the middle of            CREDIT DEMAND
    the month. However, FII flows improved towards the month-end and the Sensex                     Bank credit increased by Rs.716 crores for the fortnight ended November 14,
    closed above 5000 with a 2.81% gain. Shipping stocks attracted interest on                 to touch Rs.7,61,926 crores. Food credit declined by Rs.582 crores during the
    expectations that the tonnage tax structure will be approved in place of corporate         fortnight, while non-food credit increased by Rs.1,298 crores to Rs.7,26,487 crores.
    tax and also on hopes of a hike in freight rates. Among other sectors, technology          With the ongoing economic expansion and given that the central focus of RBI’s Mid
    stocks were back in favour on sustained buying by domestic and foreign institutions        Term review is delivery of credit efficiently at lower rates to various sectors, we could
    due to improving visibility for the sector. A spate of overseas acquisitions by domestic   see credit pick up further in the coming quarters.
    auto and auto ancillary majors is a pointer to the growing prominence of the sector.
    FII inflows during the month were relatively lower compared to the previous month               GOVERNMENT BORROWING
    and were to the tune of $701.4 million. The month also saw a revival of interest in             During the month, as per the auction calendar, RBI conducted the Rs.5000 crore
    mid and small cap stocks, which was reflected in the 9.97% gain in the S&P CNX             auction of 9-year tenor Floating rate bond (FRB). Thanks to higher tax collections,
    Midcap 200.                                                                                fiscal deficit in October fell 58.3% yoy to Rs.5000 crores. However, the cumulative
          On the economic front, industrial production in September rose 6.5%, led by          fiscal deficit at the end of October was Rs.85,978 crores, representing 56% of the
    strong growth in mining, manufacturing and electricity. Barring diesel consumption,        budgeted estimate for the fiscal year to March, 2004. While the rise in the fiscal
    all the key sectoral trends were strong in September, with commercial vehicles up          deficit is partially attributed to the transfer of proceeds of the state debt swap to the
    46.9%, driven by replacement demand and infrastructure spending. Passenger car             National Small Savings Fund, the rise in the revenue deficit is a cause for concern.
    and two-wheeler sales were up over 16% on account of low interest rates
    introduction of new models, higher exports and festive demand. The continued                    FOREIGN EXCHANGE MARKET
    buoyancy in capital goods and consumer non-durables, despite a high base, augurs                The rupee lost significant ground during the month on persistent central bank
    well for the economy.                                                                      intervention and buying from importers, and closed at 45.85/86 per dollar, off a
          Going ahead, markets are likely to be affected by year-end considerations and        high of 45.97. The RBI announced moves to tighten the norms for External
    the state election results are unlikely to have a major impact. Overall, with economic     Commercial Borrowings in order to curtail arbitrage. A weaker dollar overseas and
    fundamentals in place, markets will be looking for more visibility on the earnings         continuing portfolio inflows have forced RBI to intervene in the forex markets in recent
    front for the coming years.                                                                times to protect export competitiveness. As a result, forex reserves surged and were
                                                                                               at $95.373 billion on November 21st. RBI is set to release a report on new methods
    Chetan Sehgal, Director - Research                                                         of sterilizing foreign capital inflows during December.

    November Rain: The importance of FII flows.                                                     RBI POLICY                                   =                         =
         The major question on most people’s minds is whether the FII inflows would                 The Mid Term review of the credit policy disappointed market participants, as
    continue and what would be the impact on the market should this inflow stop and            the expected cuts in bank and repo rate did not materialize. Also, there were
    reverse. Also, many agencies are examining whether the inflows are actually from           concerns as to whether the central bank’s stance had shifted from soft rate bias to
    long-term investors or does the FII money have a different hue and colour. No doubt,       neutral or stable bias. All this resulted in the 10-year yields touching a high of 5.22%
    India has seen substantial FII inflows during the current year. Not only has the           before closing the month at 5.16%. The mood in the corporate bond market was
    allocation been large, it is also substantially above trend as compared to historical      subdued after the central bank issued guidelines on Non SLR investments restricting
    rate of investments. Some Global Emerging Market analysts have calculated that             investments in unlisted bonds and securatisations.
    most Emerging Market Portfolios are overweight in India and Indian brokers have
                                                                                                    MARKET SENTIMENT
    seen an unprecedented interest from foreigners. Is this a pipe dream or is there more
    to the inflows?                                                                                 The markets are expected to remain range bound with no major movement on
                                                                                               either side, given that liquidity is expected to remain easy. The continuing high level
         We have often heard people complain, that FDI leads to real jobs and FII
                                                                                               of money market liquidity is balanced by one neutral factor, which is the expected
    investments are more speculative and do not really result in changes on the ground.
    However, we believe that the FII inflows actually go to augment and catalyze local         pick-up in credit offtake, and a real negative factor, a global rise in rates (Bank of
    entrepreneurship, to allow them to create those assets, which are highly valued by         England and Reserve Bank of Australia have hiked rates). The profit booking by
    the market. Thus in some ways, market valuations dictate where the capital needs to        banks to meet quarterly profit targets could result in some volatility. We expect bonds
    be allocated, as those are the areas where profit earning opportunities appear to be       at the longer end to come under some pressure, given the change in the risk-return
    the highest. There could be bits of speculation and romance in trying to determine         profile and instead see bonds at the shorter-end looking more attractive.
    the areas of maximum profit potential; however, over the long term these tend to be              The corporate bond spreads have widened after the RBI restricted investment by
    temporary and markets always correct to reflect fundamentals. It is interesting that       banks in the unlisted bonds. We have increased allocation to corporate bonds in
    India has got a disproportionate share and to us this probably symbolizes                  some of our funds to take advantage of this opportunity after carefully pricing in
    disproportionate opportunity.                                                              illiquidity risk. We have been switching from long maturity instruments across gilts as
         We have already seen real activity take a cue. Seldom a day goes when there           well as corporate bonds to move into short and medium term bonds. We do not
    is no announcement of more global players setting up shop in India. Obviously, the         expect interest rates to move down sharply from current levels and hence investors
    forces of competition would try to reduce the competitive advantage of operating           need to tone down their expectations from income funds. We advise investors to
    from India. That could only lead to greater investment rather than less. Also, for that,   evaluate the Hybrid Funds (like the Monthly Income Plans and Balanced Funds) and
    there is still some time                                                                   Floating Rate Fund which offers a unique proposition in terms of risk and return.

4
       Franklin India Bluechip Fund                                                                                                                               FIBCF
                                                 Portfolio
As of November 28, 2003
                                                  Company Name                       No. of        Market Value       % of      Company Name                  No. of      Market Value         % of
                                                                                     shares         Rs. Lakhs        Assets                                   shares       Rs. Lakhs          Assets
              Fund Category
                                                  Aluminium                                                                     Industrial
                                                                                                                                Conglomerates
                                                  Hindalco *                         864278         10720.94           8.69
                                                                                                                                Grasim *                    1201296         10805.66            8.76
                                                  NALCO                              155482             239.21         0.19
                                                                                                                                IT Consulting
                                                  Automobile                                                                    & Services
                                                  Manufacturers                                                                 Infosys *                     200300         9863.77            7.99
                                                  Ashok Leyland                    1748824            4219.04          3.42     HCL Tech. *                 3088023          8322.22            6.74
Investment Style                                  Maruti Udyog                       828751           2857.95          2.32     Digital Global                300000         1970.10            1.60
The fund manager seeks steady and                                                                                               Motorcycle
                                                  Banks
consistent growth by focusing on well-                                                                                          Manufacturers
established, large size companies                 ICICI Bank *                     3922100            9801.33          7.94
                                                                                                                                Hero Honda                    812777         3044.26            2.47
Investment Objective                              SBI *                            2021960            9518.38          7.71
                                                                                                                                Oil & Gas Exploration
Aims to provide medium to long term               Commodity                                                                     & Production
capital appreciation
                                                  Chemicals                                                                     ONGC                          405257         2502.06            2.03
Date of Allotment                                 Reliance Industries                517000           2522.44          2.04     Oil & Gas Refining
December 1, 1993                                                                                                                & Marketing
                                                  Construction &
                                                  Engineering                                                                   BPCL *                      2867553         10270.14            8.32
Fund Manager
                                                  L&T *                            1534846            6167.01          5.00     HPCL                        1282776          4707.15            3.81
K.N. Siva Subramanian
                                                                                                                                Pharmaceuticals
Latest NAV                                        Consumer Finance
                                                                                                                                Sun Pharma                    229003         1380.32            1.12
Growth Plan         Rs. 43.35                     LIC Housing Finance              2075302            3732.43          3.02
Dividend Plan       Rs. 19.22                                                                                                   Tobacco
                                                  Electric Utilities
                                                                                                                                ITC *                         887383         7582.24            6.14
Fund Size                                         Tata Power                       1848980            4962.66          4.02
                                                                                                                                Total equity holdings                     121271.95            98.26
Rs. 1234.21 crores
                                                  Gas Utilities                                                                 Other current assets                         2148.95            1.74
Turnover                                          GAIL *                           3465892            6082.64          4.93     Total assets                              123420.90          100.00
Portfolio Turnover        111.24%
                                                                                                                                                                                         * Top 10 holdings

Volatility Measures (3 years)

Standard Deviation             7.44
                                                 Portfolio Composition and Performance
R-squared                      0.94
Beta                           1.03                Fu nd M an a g e r ’ s C o m m e n ta r y                                    S e c t o r A l l o c a t i o n - To t a l A s s e t s
Sharpe Ratio*                  0.17                     The equity exposure of the fund has increased to
* Risk-free rate assumed to be 6.90% (based on     98.26% during the month as we deployed the inflows
                                                   N AV Per o r start c
                                                   received at fthe m a nofethe month across our holdings in
JP Morgan 3 month T-Bill Index)

Expense Ratio                                      various sectors. We hiked exposure to stocks like
2.07%                                              Reliance Industries, LIC Housing Finance and L&T.

Minimum Investment/
Multiples for New Investors
                                                   N AV Per f o r m a n c e
Rs.5000/1000
                                                                           Last    Last    Last     Last      Since
Additional Investment/                                                   3 months 1 year 3 years* 5 years* inception*
                                                   N AV Per f o r m a n c e
Multiples for Existing Investors                  FIBCF (G)              23.86% 98.94% 24.50% 38.31% 26.40%

Rs.1000/1000                                      FIBCF (D)              23.92% 98.94% 24.53% 38.32% 26.40%
                                                  BSE Sensex             18.85% 56.24% 8.08%                12.42%    4.36%
                                                                                                                                Rs. 10000 invested at inception in FIBCF & BSE Sensex
Load Structure                                   *Compounded and annualised Dividends/Bonus declared assumed to be reinvested
                                                  Past performance may or may not be sustained in future.
Entry Load          2%                                                                                                                                                                      Rs. 104,006
Exit Load           NIL
                                                       SIP in an equity fund can provide healthy returns over time
                                                                    If you had invested in FIBCF…….
                                                   Monthly investment                                       Rs.1,000
                                                   Number of investment periods (since Jan 1997)*          83 months
                                                   Total investment                                       Rs. 83,000                                                                        Rs. 15,324
                                                   N AV Per f o r m a n c e
                                                   Value of investment (As of November 28, 2003)         Rs.275,575
                                                   Return on investment                                      34.37%
                                                   * The scheme became open end in January 1997. Load is not taken into
                                                     consideration. In the same period, a SIP in BSE Sensex would have given                         ____ FIBCF ____ BSE Sensex
                                                     a return of 9.29%.
                                                                                                                                     Dividend/Bonus assumed reinvested at ex-dividend NAV


                                                                                                                                                                                                             5
         Templeton India Growth Fund                                                                                                                                                  TIGF
                                                     Portfolio
    As of November 28, 2003
                                                      Company Name                       No. of        Market Value          % of        Company Name                       No. of     Market Value       % of
                                                                                         shares         Rs. Lakhs           Assets                                          shares      Rs. Lakhs        Assets
                  Fund Category
                                                      Aluminium                                                                          Integrated
                                                      Hindalco *                         110000            1364.50               4.41    Telecommunication
                                                                                                                                         Services
                                                      Auto Parts &
                                                      Equipment                                                                          MTNL                                45000           54.23         0.18

                                                      MICO *                               28000           3338.58           10.80       IT Consulting & Services
                                                      Automobiles                                                                        HCL Tech. *                        675000        1819.13          5.88
                                                      Manufacturers                                                                      Satyam Computer                    310000        1023.16          3.31
                                                      Maruti Udyog                         78850            271.91               0.88    NIIT                               400000          864.60         2.80

    Investment Style                                  Banks                                                                              Marine
                                                      SBI *                              600000            2824.50               9.14    Shipping Corporation
    Templeton Equity Portfolio Managers                                                                                                  of India *                         900000        1507.95          4.88
    adopt a long term disciplined approach            ING Vysya Bank *                   275000            1404.29               4.54
    to investing and use the widely known                                                                                                Motorcycle
                                                      ICICI Bank                         200000             499.80               1.62
    philosophy of ‘value investing’                                                                                                      Manufacturers
                                                      Corporation Bank                     72020            162.33               0.52
                                                                                                                                         Hero Honda                         270000        1011.29          3.27
                                                      Commodity Chemicals
    Investment Objective                                                                                                                 Bajaj Auto                          80000          784.92         2.54
                                                      Reliance Industries                160000             780.64               2.52    Oil & Gas Refining
    Seeks to provide long term capital growth
                                                      ICI India                          233524             386.83               1.25    & Marketing
                                                      Electric Utilities                                                                 HPCL *                             400000        1467.80          4.75
    Date of Allotment
                                                      Tata Power                           75000            201.30               0.65    BPCL                               350000        1253.53          4.05
    September 10, 1996
                                                      Gas Utilities                                                                      Indian Oil Corporation              45361          171.40         0.55
                                                      GAIL *                             900000            1579.50               5.11    Packaged Foods
    Fund Manager
                                                      Heavy Electrical                                                                   GSK Consumer Healthcare 117257                     364.08         1.18
    Dr. J. Mark Mobius                                Equipment                                                                          Pharmaceuticals
                                                      BHEL                               202456             903.16               2.92    Ranbaxy                             50000          511.05         1.65
    Latest NAV
                                                      Highways & Railtracks                                                              Dr. Reddy’s                         35000          445.08         1.44
    Growth Plan Rs. 26.09
                                                      Concor                             180000            1025.46               3.32    Cipla                               30000          360.41         1.17
    Dividend Plan Rs. 23.46
                                                      Industrial                                                                         Tobacco
    Fund Size                                         Conglomerates                                                                      ITC *                              160000       1367.12          4.42
                                                      Grasim *                           207500            1866.46               6.04    Total equity holdings                          30439.38         98.46
    Rs. 309.16 crores
                                                      Industrial Machinery                                                               Other current assets                             476.60          1.54
    Turnover                                          Cummins                            800000             824.40               2.67    Total assets                                   30915.98        100.00

    Portfolio Turnover         45.79%                                                                                                                                                             * Top 10 holdings

    Volatility Measures (3 years)

    Standard Deviation        6.86                   Portfolio Composition and Performance
    Sharpe Ratio*             0.24
    R-squared                 0.94**      0.93#        Fu nd M an a g e r ’ s C o m m e n ta r y                                          S e c t o r A l l o c a t i o n - To t a l A s s e t s
    Beta                      0.95**      0.92#
                                                            The equity exposure of the scheme has increased
    ** BSE Sensex # MSCI India
    * Risk-free rate assumed to be 6.90% (based on     marginally to 98.46% during the month. While the
    JP Morgan 3 month T-Bill Index)                    composition of the portfolio remained the same, we
    Expense Ratio
                                                       pared exposures to stocks across sectors based on fund
                                                       flows and valuation consideration, while sticking to the
    2.25%                                              basic characteristic of our portfolio.

    Minimum Investment/
    Multiples for New Investors                        N AV Per f o r m a n c e

    Rs.5000/1000                                                               Last    Last    Last     Last      Since
                                                                             3 months 1 year 3 years* 5 years* inception*

    Additional Investment/                            TIGF                   27.93% 109.31% 29.74% 33.16% 15.84%
    Multiples for Existing Investors                  BSE Sensex             18.85% 56.24% 8.08%                 12.42%          5.44%
                                                      MSCI India Value       19.23% 49.59% 6.75%                 15.74%          N.A     Rs. 10000 invested at inception in TIGF & BSE Sensex
    Rs.1000/1000
                                                     *Compounded and annualised         Dividends declared assumed to be reinvested
                                                                                                                                                                                                       Rs. 29,078
    Load Structure                                    Past performance may or may not be sustained in future.

    Entry Load          2%
                                                             SIP in an equity fund can provide healthy returns over time
    Exit Load          NIL                                               *If you had invested in TIGF…….
                                                       Monthly investment                                               Rs.1,000
                                                       Number of investment periods (since inception)                 86 months                                                                         Rs. 14,687
                                                       N AV Pe r f o
                                                       Total investment r m a n c e                                   Rs.86,000
                                                       Value of investment (As of November 28, 2003)                Rs. 215,631
                                                       Return on investment                                              25.21%
                                                       *Load is not taken into consideration. In the same period, a SIP in BSE                                  ____ TIGF     ____ BSE Sensex
                                                       Sensex would have given a return of 9.14%.                                               Dividends assumed reinvested at ex-dividend NAV



6
       Franklin India Prima Plus                                                                                                                                           FIPP
                                                 Portfolio
As of November 28, 2003
                                                  Company Name                      No. of      Market Value          % of    Company Name                     No. of    Market Value       % of
                                                                                    shares       Rs. Lakhs           Assets                                    shares     Rs. Lakhs        Assets
              Fund Category
                                                  Aluminium                                                                   Digital Global *                 262999      1727.11          5.61
                                                  Hindalco *                         180362        2237.30            7.26    Mphasis BFL                      143242       824.72          2.68
                                                  Auto Parts & Equipment                                                      EServe                            86246       612.00          1.99
                                                  MICO                                  7427        885.56            2.87
                                                                                                                              Hughes Software                   70000       343.91          1.12
                                                  Automobile Manufacturers
                                                                                                                              HCL Tech.                           9649       26.00          0.08
                                                  Ashok Leyland                       15015           36.22           0.12
                                                  Banks                                                                       Movies & Entertainment
                                                  ICICI Bank *                     1095126         2736.72            8.88    Mukta Arts                          6932         5.15         0.02
                                                  HDFC Bank *                       688782         2083.22            6.76    Oil & Gas Refining
Investment Style                                  SBI *                             365640         1721.25            5.59    & Marketing
                                                  Kotak Mahindra Bank                41966          144.15            0.47    BPCL *                           608103      2177.92          7.07
The fund manager seeks capital                    Broadcasting & Cable TV
appreciation over the long-term by                                                                                            HPCL                             205883       755.49          2.45
                                                  Television Eighteen                240000         467.88            1.52
focusing on wealth creating                                                                                                   Packaged Foods
                                                  Commodity Chemicals
companies across all sectors and                                                                                              Nestle                            67771       406.66          1.32
market cap ranges.                                Asian Paints                       185538         572.38            1.86
                                                  Construction                                                                Pharmaceuticals
                                                  & Engineering                                                               Sun Pharma *                     303139      1827.17          5.93
Investment objective
                                                  L&T *                              330000        1325.94            4.30    Wockhardt                        101536       640.74          2.08
Aims to provide growth of capital                 Construction Materials                                                      Dr Reddy’s                        38300       487.04          1.58
plus regular dividend                             Madras Cements                      13978         100.27            0.33
                                                                                                                              Pfizer                            39234       177.28          0.58
                                                  Consumer Finance
Date of Allotment                                 HDFC                                81559         450.53            1.46    Sun Pharma (RPS)                 257940          3.61         0.01
                                                  Shriram City Union                  87160          18.87            0.06    Tobacco
September 29, 1994
                                                  Diversified                                                                 ITC                              151350      1293.21          4.20
Fund Manager                                      Financial Services                                                          Unlisted equity holdings
                                                  CRISIL                              91663         414.41            1.35    Quantum Info.                                    0.39         0.00
R. Sukumar                                        Gas Utilities
                                                                                                                              Partly Convertible
                                                  GAIL                               485529         852.10            2.77
Latest NAV                                                                                                                    Debentures
                                                  Hotels
Growth Plan         Rs. 41.94                     Indian Hotels                       56095         212.60            0.69    Television Eighteen ZCSPCD’s        9231       21.70          0.07
                                                  Industrial Conglomerates                                                    Total equity holdings                       29902.53         97.08
Dividend Plan Rs. 20.42
                                                  Grasim *                           147203        1324.09            4.30    Partly convertible
Fund Size                                         Indian Rayon                       356500         831.89            2.70    debentures                                     21.70         0.07
Rs. 308.07 crores                                 IT Consulting & Services                                                    Other current assets                          883.09         2.85
                                                  Infosys *                           44243        2178.75            7.07    Total assets                                30807.32       100.00
Turnover                                                                                                                                                                          * Top 10 holdings
Portfolio Turnover         187.89%
                                                 Portfolio Composition and Performance
Volatility Measures (3 years)

Standard Deviation 6.92
                                                   Fu nd M an a g e r ’ s C o m m e n ta r y                                   S e c t o r A l l o c a t i o n - To t a l A s s e t s
R-squared                 0.95
Beta                      0.85                            The equity exposure of the scheme has decreased
                                                   marginally to 97.08% from 98.56% during the month, as we
Sharpe Ratio*             0.20
                                                   reshuffled our portfolio based on relative valuations. The main
* Risk-free rate assumed to be 6.90% (based on     additions to the portfolio have been Kotak Mahindra Bank and
JP Morgan 3 month T-Bill Index)                    Dr. Reddy’s. Kotak Mahindra Bank has a significant stake in
                                                   Indian capital market activities through its subsidiaries. The
Expense Ratio                                      current upturn in the equity markets and the low interest regime is
                                                   likely to boost its consolidated numbers. Moreover, its acquisition
2.31%
                                                   plans along with low NPAs make it an attractive investment.

Minimum Investment/
Multiples for New Investors                        N AV Per f o r m a n c e

Rs.5000/1000                                                           Last         Last    Last     Last      Since
                                                                     3 months      1 year 3 years* 5 years* inception*
Additional Investment/                            FIPP (G)              19.18% 87.57% 25.93% 36.16% 16.92%
Multiples for Existing Investors
                                                  FIPP (D)              19.14% 87.55% 25.91% 36.16% 16.92%
Rs.1000/1000                                      S&P CNX 500           16.81% 73.34% 11.78% 18.01%                   1.83%    Movement of Rs. 10000 invested in FIPP & S&P CNX 500
                                                 *Compounded and annualised Dividends declared assumed to be reinvested
Load Structure                                    Past performance may or may not be sustained in future.
                                                                                                                                                                                         Rs. 41,940
Entry Load          2%
                                                       SIP in an equity fund can provide healthy returns over time
Exit Load           NIL
                                                                    *If you had invested in FIPP…….
                                                   Monthly investment                                            Rs.1,000
                                                   Number of investment periods (since inception)             109 months                                                                Rs. 11,812
                                                   Total investment                                          Rs. 109,000
                                                   Value of investment (As of November 28, 2003)             Rs. 384,554
                                                   Return on investment                                           26.52%
                                                   * Load is not taken into consideration. In the same period, a SIP in
                                                     S&P CNX 500 would have given a return of 11.13%.                                              ____ FIPP   ____ S&P CNX 500



                                                                                                                                                                                                      7
         Franklin India Prima Fund                                                                                                                                              FIPF
                                                     Portfolio
    As of November 28, 2003
                                                      Company Name                     No. of       Market Value         % of        Company Name                    No. of   Market Value        % of
                                                                                       shares        Rs. Lakhs          Assets                                       shares    Rs. Lakhs         Assets
                  Fund Category
                                                      Air Freight & Couriers                                                         Gas Utilities
                                                      Blue Dart                  215063                  294.64               0.77   Gujarat Gas               243504            1205.34           3.14
                                                      Apparel & Accessories                                                          Hotels
                                                      Raymond *                 1293859                 2277.84               5.93   Indian Hotels             214067             811.31           2.11
                                                      Auto Parts & Equipment                                                         Industrial
                                                      MICO *                      25667                 3060.40               7.97   Conglomerates
                                                      Ucal Fuel                  132115                  374.81               0.98   Indian Rayon *           1481838            3457.87           9.00
                                                                                                                                     Industrial Machinery
                                                      Denso India                452504                  254.53               0.66
                                                                                                                                     Fag Bearings              673665              704.65          1.83
                                                      Automobile
                                                                                                                                     Ingersoll Rand            191772              460.35          1.20
    Investment Style                                  Manufacturers
                                                                                                                                     Cummins                   251585              259.26          0.67
    The fund manager seeks aggressive                 Ashok Leyland *           1326247                 3199.57               8.33   Vesuvis India              80000              106.16          0.28
    growth by focusing primarily on mid               Eicher Motors *           1099173                 1978.51               5.15   Greaves Cotton            145309               71.20          0.19
    and small cap companies.                          Mahindra & Mahindra        200000                  706.00               1.84   Marine
                                                      Banks                                                                          GE Shipping *            1636479            2268.16           5.90
    Investment Objective                              UTI Bank *                2673094                 2238.72               5.83   Shipping Corporation
    Aims to provide long term capital                 Andhra Bank               1720107                  775.77               2.02   of India *               1251000            2096.05           5.46
    appreciation as primary objective                 Building Products                                                              Personal Products
    and income as secondary objective                 Asahi India                168485                  201.76               0.53   Marico                    196058              374.08          0.97
                                                      Commodity Chemicals                                                            Pharmaceuticals
    Date of Allotment                                                                                                                IPCA Labs                  57100              277.51          0.72
                                                      Goodlass Nerolac *         400499                 1585.98               4.13
    December 1, 1993                                  Finolex                    762483                  468.16               1.22   Power Generation
                                                      Rain Calcining            1467265                  366.82               0.95   & Supply
    Fund Manager                                                                                                                     HONDA Siel                112938              143.77          0.37
                                                      Construction Materials
    K. N. Siva Subramanian                                                                                                           Speciality Chemicals
                                                      Madras Cements              80700                  578.90               1.51
                                                                                                                                     Atul Ltd                  594209              329.79          0.86
                                                      Ramco Industries             1324                    3.92               0.01
    Latest NAV                                                                                                                       BASF                      153312              229.89          0.60
                                                      Consumer Finance
    Growth Plan         Rs. 64.97                                                                                                    Clariant                   36125               61.25          0.16
                                                      LIC Housing Finance *     1485060                 2670.88               6.95
                                                                                                                                     Steel
    Dividend Plan Rs. 29.35                           Diversified Metals                                                             Maharashtra Seamless      171501              344.37          0.90
                                                      & Mining                                                                       Textiles
    Fund Size                                         Gujarat Mineral Dev. Corp. 251422                  433.45               1.13   Mahavir Spinning          161299              236.79          0.62
    Rs. 384.22 crores                                 Electrical Components                                                          Rajasthan Spinning &
                                                      & Equipments                                                                   Weaving Mills             202727               78.76          0.20
    Turnover                                          Crompton Greaves           447624                  606.98               1.58   Unlisted equity holdings
    Portfolio Turnover         147.34%                Fertilizers &                                                                  HIM Technoforge                                    0.02       0.00
                                                      Agricultural Chemicals                                                         Control & Switches                                 0.01       0.00
    Volatility Measures (3 years)                     Monsanto Chemicals         100000                 1156.80               3.01   Total equity holdings                      38123.76         99.25
    Standard Deviation          9.34                  EID Parry                  542024                  946.64               2.46   Other current assets                         298.65          0.75
    R-squared                   0.89                  Bayer                      174520                  426.09               1.11   Total assets                               38422.41        100.00
    Beta                        1.08
    Sharpe Ratio*               0.30                                                                                                                                                      * Top 10 holdings
    * Risk-free rate assumed to be 6.90% (based on   Portfolio Composition and Performance
    JP Morgan 3 month T-Bill Index)
                                                       Fu nd M an a g e r ’ s C o m m e n ta r y                                     S e c t o r A l l o c a t i o n - To t a l A s s e t s
    Expense Ratio
    2.30%                                                    The equity exposure of the scheme increased to
                                                       N AV Per f o m month.
                                                       99.25% duringrthe a n c e The new additions to the portfolio
    Minimum Investment/
                                                       have been Gujarat Mineral Development Corporation
    Multiples for New Investors
                                                       (GMDC), Denso India and Mahavir Spinning.
    Rs.5000/1000

    Additional Investment/
    Multiples for Existing Investors
                                                       N AV Per f o r m a n c e
    Rs.1000/1000
                                                                             Last    Last    Last     Last     Since
    Load Structure                                                         3 months 1 year 3 years* 5 years* inception*
    Entry Load          2%
                                                      FIPF (G)              32.46% 134.55% 49.72% 43.82% 20.59%
    Exit Load           Nil
                                                      FIPF (D)              32.45% 134.65% 49.72% 43.80% 20.58%
                                                      S&P CNX 500           16.81% 73.34% 11.78% 18.01%                   4.30%                                                       Rs. 64,970
                                                                                                                                     Rs. 10000 invested at inception in FIPF & S&P CNX 500
                                                     *Compounded and annualised Dividends declared assumed to be reinvested
                                                      Past performance may or may not be sustained in future.



                                                           SIP in an equity fund can provide healthy returns over time
                                                                        *If you had invested in FIPF…….                                                                                         Rs. 15,229
                                                       Monthly investment                                       Rs.1,000
                                                       Number of investment periods (since inception)        120 months
                                                       N AV Pe r f o
                                                       Total investment r m a n c e                          Rs.120,000
                                                       Value of investment (As of November 28, 2003)         Rs.492,250
                                                       Return on investment                                      26.64%
                                                       * Load is not taken into consideration. In the same period, a SIP in
                                                         S&P CNX 500 would have given a return of 9.64%.                                                 ____ FIPF   ____ S&P CNX 500



8
       Franklin India Growth Fund                                                                                                                                      FIGF
                                                 Portfolio
As of November 28, 2003
                                                 Company Name                      No. of      Market Value          % of     Company Name                 No. of       Market Value        % of
                                                                                   shares       Rs. Lakhs           Assets                                 shares        Rs. Lakhs         Assets
              Fund Category
                                                 Aluminium                                                                    Gas Utilities

                                                 Hindalco *                        15339           190.27             6.89    GAIL                         43122                75.68        2.74
                                                 Auto Parts &                                                                 IT Consulting &
                                                 Equipment                                                                    Services
                                                 MICO *                              2000          238.47             8.63
                                                                                                                              Infosys *                         4759       234.36            8.48
                                                 Automobiles
                                                                                                                              Mphasis BFL                  10644                61.28        2.22
                                                 Manufacturers
Investment Style                                                                                                              Oil & Gas Exploration
                                                 Maruti Udyog                      18750             64.66            2.34
The Franklin Equity Portfolio                                                                                                 & Production
Managers follow the process of                   Banks
growth style of investing and believe                                                                                         ONGC                         10000                61.74        2.23
in ‘growth at a reasonable price’                SBI *                             35900           169.00             6.12
                                                                                                                              Oil & Gas Refining
                                                 HDFC Bank *                       47000           142.15             5.14
Investment Objective                                                                                                          & Marketing
                                                 ICICI Bank *                      50000           124.95             4.52
Seeks to generate long-term capital                                                                                           BPCL *                       56555           202.55            7.33
appreciation                                     Kotak Mahindra Bank               24500             84.16            3.05
                                                                                                                              HPCL *                       37500           137.61            4.98
                                                 ING Vysya Bank                    14458             73.83            2.67
Date of Allotment                                                                                                             Pharmaceuticals
                                                 Commodity Chemicals
February 07, 2000                                                                                                             Sun Pharma *                 26661           160.70            5.82
                                                 Asian Paints                      32983           101.75             3.68
Fund Manager                                     Construction &                                                               Cipla                             9116       109.52            3.96

R. Sukumar                                       Engineering                                                                  Dr. Reddy’s                       5000            63.58        2.30
                                                 L&T                               15000             60.27            2.18    Tobacco
Latest NAV
                                                 Diversified Chemicals
FIGF               Rs. 9.48                                                                                                   ITC *                        15400           131.59            4.76
                                                 Pidilite                          34271           102.81             3.72
Fund Size                                                                                                                     Total equity holdings                      2613.44           94.57
                                                 Diversified
Rs. 27.63 crores                                 Financial Services                                                           Other current assets                         150.05            5.43

                                                 CRISIL                              4981            22.52            0.81    Total assets                               2763.49          100.00
Turnover

Portfolio Turnover          82.55%                                                                                                                                                  * Top 10 holdings


Volatility Measures (3 years)                    Portfolio Composition and Performance
Standard Deviation            7.14
R-squared                     0.96                Fu nd M an a g e r ’ s C o m m e n ta r y                                   S e c t o r A l l o c a t i o n - To t a l A s s e t s
Beta                          0.90
                                                      The equity exposure of the fund decreased to
Sharpe Ratio*                 0.08                94.57% duringm a n c e as we reshuffled the portfolio
                                                  N AV Per f o r the month
* Risk-free rate assumed to be 6.90% (based on    on valuation considerations. We added Kotak Mahindra
JP Morgan 3 month T-Bill Index)                   Bank to our holdings, while exiting Ashok Leyland,
Expense Ratio                                     Gujarat Ambuja and Tata Power.

2.50%

Minimum Investment/                               N AV Per f o r m a n c e
Multiples for New Investors
                                                                        Last          Last          Last            Since
Rs.5000/1000                                                          3 months       1 year       3 year*        inception*
                                                 FIGF                  17.62%       79.55%        14.32%           -1.39%
Additional Investment/
                                                 BSE 100               16.38%       62.75%         7.99%           -5.21%
Multiples for Existing Investors
                                                 *Compounded and annualised                                                   Rs. 10000 invested at inception in FIGF & BSE 100
Rs.1000/1000                                     Past performance may or may not be sustained in future.

Load Structure

Entry Load             2%                                                                                                                                                                 Rs. 9480
                                                      SIP in an equity fund can provide healthy returns over time
Exit Load              NIL                                         *If you had invested in FIGF…….
                                                  Monthly investment                                      Rs.1,000
                                                  Number of investment periods (since inception)         46 months                                                                         Rs. 8156
                                                  Total investment r m a n c e
                                                  N AV Pe r f o                                          Rs.46,000
                                                  Value of investment (As of November 28, 2003)          Rs.74,255
                                                  Return on investment                                     25.78%
                                                  * Load is not taken into consideration. In the same period, a SIP in BSE
                                                    100 would have given a return of 19.28%.                                                        ____ FIGF    ____ BSE 100



                                                                                                                                                                                                        9
          Franklin India Taxshield                                                                                                                                                        FIT
                                                      Portfolio
     As of November 28, 2003
                                                       Company Name                      No. of       Market Value          % of       Company Name                 No. of      Market Value       % of
                                                                                         shares        Rs. Lakhs           Assets                                   shares       Rs. Lakhs        Assets
                   Fund Category
                                                       Aluminium                                                                       IT Consulting
                                                       Hindalco *                          86394          1071.67              8.41    & Services
                                                       Auto Parts &                                                                    Infosys *                     19542          962.35         7.56
                                                       Equipment                                                                       Digital Global *              90001          591.04         4.64
                                                       MICO                                 1028           122.57              0.96    Mphasis BFL *                101660          585.31         4.60
                                                       Automobile                                                                      HCL Tech.                    105300          283.78         2.23
                                                       Manufacturers                                                                   Oil & Gas Exploration
                                                       Eicher                              10000               9.06            0.07    & Production
                                                       Eicher Motors                        3371               6.07            0.05    Hindustan Oil Exploration    164017            81.76        0.64
     Investment Style                                                                                                                  Oil & Gas Refining
                                                       Banks
                                                                                                                                       & Marketing
     The fund manager seeks steady                     SBI *                             185881            875.03              6.87
     growth by maintaining a diversified                                                                                               BPCL *                       280373         1004.16         7.88
                                                       HDFC Bank *                       173928            526.05              4.13
     portfolio of equities across sectors                                                                                              HPCL                         102000          374.29         2.94
     and market cap ranges.                            ICICI Bank                        183688            459.04              3.60
                                                                                                                                       Packaged Foods
                                                       Karur Vysya Bank                    72000           224.46              1.76
     Investment Objective                                                                                                              Nestle                        21789          130.74         1.03
                                                       Kotak Mahindra Bank     35037                       120.35              0.94    Personal Products
     Aims to provide medium to long term               Commodity Chemicals                                                             Marico                       139980          267.08         2.10
     growth of capital along with income               Asian Paints           140833                       434.47              3.41    Marico (RPS)                  69200            6.26         0.05
     tax rebate.                                       Construction &                                                                  Pharmaceuticals
     Date of Allotment                                 Engineering                                                                     Sun Pharma *                 124646          751.30         5.90
                                                       L&T                    105900                       425.51              3.34    Wockhardt                     42614          268.92         2.11
     April 10, 1999
                                                       Fertilizers &                                                                   Pfizer                        27721          125.26         0.98
     Fund Manager                                      Agricultural Chemicals                                                          Sun Pharma (RPS)              20000            0.28         0.00
     R. Sukumar                                        Monsanto Chemicals      28248                       326.77              2.57    Speciality Chemicals
                                                       EID Parry                         133096            232.45              1.82    BASF                          94616          141.88         1.11
     Latest NAV
                                                       Gas Utilities                                                                   Tobacco
     Growth Plan   Rs. 42.42                           GAIL                              268122            470.55              3.69    ITC *                         72608          620.40         4.87
     Dividend Plan Rs. 19.94                           Hotels                                                                          Unlisted equity
     Fund Size                                         Indian Hotels                       16148             61.20             0.48    holdings
     Rs. 127.38 crores                                 Industrial                                                                      Quantum Info.                                   0.06        0.00
                                                       Conglomerates                                                                   Total equity holdings                     12417.47        97.47
     Turnover                                          Grasim *                            71246           640.86              5.03    Other current assets                        320.27         2.53
     Portfolio Turnover         123.88%                Indian Rayon                        92773           216.49              1.70    Total assets                              12737.74       100.00

     Volatility Measures (3 years)                                                                                                                                                        * Top 10 holdings
     Standard Deviation            7.15
     R-squared                     0.97               Portfolio Composition and Performance
     Beta                          0.90
     Sharpe Ratio*                 0.12
     * Risk-free rate assumed to be 6.90% (based on
                                                        Fu nd M an a g e r ’ s C o m m e n ta r y                                      S e c t o r A l l o c a t i o n - To t a l A s s e t s
     JP Morgan 3 month T-Bill Index)
                                                                 The equity exposure of the scheme has decreased
     Expense Ratio
                                                        N 97.47% during the
                                                        to AV Per f o r m a n c e month as we reshuffled our
     2.43%                                              portfolio. The main additions to the portfolio have been
     Minimum Investment/                                Wockhardt, Nestle and Kotak Mahindra Bank.
     Multiples for New Investors

     Rs.500/500

     Additional Investment/                             N AV Per f o r m a n c e
     Multiples for Existing Investors                                          Last           Last           Last          Since
     Rs.500/500                                                              3 months        1 year        3 years      inception*

     Load Structure                                    FIT (G)                18.26%        80.28%        18.29%         36.55%
                                                       FIT (D)                18.27%        80.29%        18.32%         36.56%
     Entry Load          2%
     Exit Load           NIL                           S&P CNX 500            16.81%        73.34%        11.78%         14.20%

     Tax Rebate                                       *Compounded and annualised         Dividends declared assumed to be reinvested   Rs. 10000 invested at inception in FIT & S&P CNX 500
                                                      Past performance may or may not be sustained in future.
     Investments upto Rs.10,000 in a
     financial year qualify for a tax rebate                                                                                                                                                    Rs. 42,420
     under Section 88 (2) (xiii b) of the
     Income Tax Act, 1961                                   SIP in an equity fund can provide healthy returns over time
                                                                         *If you had invested in FIT…….
                                                        Monthly investment                                               Rs.1,000                                                               Rs. 18,514
                                                        Number of investment periods (since inception)                 56 months
                                                        N AV Per f o
                                                        Total investment r m a n c e                                  Rs. 56,000
                                                        Value of investment (As of November 28, 2003)                Rs. 113,180
                                                        Return on investment                                              30.98%
                                                        * Load is not taken into consideration. In the same period, a SIP in
                                                                                                                                                           ____ FIT ____ S&P CNX 500
                                                          S&P CNX 500 would have given a return of 18.61%.


10
    Franklin India Index Fund
    Franklin India Index Tax Fund                                                                                                   FIIF/FITF
                                          Portfolio
As of November 28, 2003
                                          Company Name                                  FIIF             FITF      Company Name                        FIIF          FITF
                                                                                    (Rs. Lakhs)      (Rs. Lakhs)                                   (Rs. Lakhs)   (Rs. Lakhs)
            Fund Category
                                          Reliance Industries                         403.32           53.93       BSES                               37.24          4.98
                                          Hindustan Lever                             232.68           31.11       Sun Pharma                         32.96          4.41
                                          Wipro                                       212.10           28.36       Zee Telefilms                      31.77          4.25
                                          Infosys                                     193.44           25.91
                                                                                                                   Tata Power                         31.48          4.21
                                          SBI                                         146.78           19.63
                                                                                                                   IPCL                               31.40          4.20
                                          ITC                                         125.87           16.83
                                                                                                                   Shipping Corporation of India      28.02          3.75
                                          Ranbaxy                                     112.42           15.04
                                          SAIL                                        103.12           13.79       Oriental Bank of Commerce          26.51          3.54
Investment Style
                                          ICICI Bank                                     90.91         12.16       Gujarat Ambuja Cements             25.81          3.45
The Fund Managers follow the
passive style of equity investing         GAIL                                           87.91         11.76       Mahindra & Mahindra                24.26          3.25
                                          HDFC                                           80.30         10.74       ACC                                22.96          3.07
Investment Objective
                                          TISCO                                          78.96         10.56
Seeks to invest in companies                                                                                       VSNL                               22.85          3.06
comprising the NIFTY FIFTY to             Tata Motors                                    77.44         10.36
                                                                                                                   GSK Pharmaceuticals                21.70          2.90
attain results commensurate with the      HPCL                                           73.79           9.87
S&P CNX Nifty Index                                                                                                Tata Chemicals                     13.63          1.82
                                          Hindalco                                       67.93           9.10
Date of Allotment                         BHEL                                           64.55           8.63      ABB                                13.32          1.78
FIIF             August 4, 2000           BPCL                                           63.71           8.52      Digital Global                     12.82          1.71
FITF             February 26, 2001
                                          Satyam Computer                                61.53           8.23      Dabur                              11.51          1.54
Fund Manager                              L&T                                            59.12           7.91      Colgate Palmolive                  11.22          1.50
Deepesh Pandey                            Bajaj Auto                                     58.92           7.87      Indian Hotels                      10.14          1.36
Latest NAV                                NALCO                                          58.63           7.84
                                                                                                                   Tata Tea                            8.64          1.15
FIIF             Rs. 12.3372              Dr. Reddy’s                                    57.64           7.71
FITF             Rs. 12.6630                                                                                       GSK Consumer Healthcare             8.41          1.12
                                          HDFC Bank                                      50.87           6.80
                                                                                                                   Britannia                           8.05          1.07
Fund Size                                 Grasim                                         48.89           6.54
FIIF             Rs. 33.19 crores         HCL Tech.                                      45.96           6.16      NIIT                                4.95          0.66
FITF             Rs. 4.43 crores                                                                                   Total equity holdings           3228.47        431.77
                                          MTNL                                           44.96           6.01
Expense Ratio                             Hero Honda                                     44.35           5.93      Other current assets               90.77        11.34
FITF         1.50%                        Cipla                                          42.74           5.71      Total assets                    3319.25        443.11
FIIF         1.49% (Apr to Nov 2003)
             1% (Nov. 24, 2003 onwards)

Minimum Investment/Multiples for
New Investors                             Portfolio Composition and Performance
FIIF             Rs.5000/1000
FITF             Rs.500/500
                                           N AV Per f o r m a n c e                                                Composition by Assets - FIIF
Additional Investment/Multiples for
                                                              Last       Last    Last      Since   Tracking
Existing Investors
                                                            3 months    1 year 3 years* inception* Error#
FIIF             Rs.1000/1000
FITF             Rs.500/500               FIIF              18.41% 53.52% 8.93%             6.44%        0.72%
                                          S&P CNX Nifty     19.07% 53.81% 8.41%             2.64%           -
Load Structure
                                          FITF              18.68% 54.21%          N.A      8.95%        0.67%
                FIIF       FITF
                                          S&P CNX Nifty     19.07% 53.81%          N.A      7.83%           -
Entry Load NIL         1%
Exit Load      1%      NIL                *Compounded and annualised
          (if redeemed                    Past performance may or may not be sustained in future.
                                          # Excluding returns on open offers/buy backs
                                                                                                                     s Equity                      97.27%
        within 1 month)
                                                                                                                     s Call, Cash & Other Assets    2.73%
Lock - in Period
FIIF          NIL
FITF          3 years from allotment

Tax Rebate - FITF
Investments upto Rs.10,000 in a            Rs. 10000 invested at inception in FIIF                                 Composition by Assets - FITF
financial year in FITF qualify for a
tax rebate under Section 88 (2) (xiii                                                               Rs. 12,337
b) of the Income Tax Act, 1961




                                                                                                                     s Equity                      97.44%
                                                                                                                     s Call, Cash & Other Assets    2.56%



                                                                                                                                                                               11
         FT India Index Fund                                                                                                                    FTIIF
                                            Portfolio
     As of November 28, 2003
                                            Company Name             No. of   Market Value    % of     Company Name                  No. of      Market Value      % of
                                                                     shares    Rs. Lakhs     Assets                                  shares       Rs. Lakhs       Assets
                 Fund Category
                                            NSE Sensex Plan                                            BSE Sensex Plan
                                            Reliance Industries      14092        68.64       12.37    Reliance Industries             8903           43.44        13.63
                                            Hindustan Lever          22234        39.63        7.14    Infosys                          576           28.37         8.90
                                            Wipro                      2347       36.10        6.51    Hindustan Lever               12749            22.73         7.13
                                                                                                       ICICI Bank                      7101           17.75         5.57
                                            Infosys                     676       33.30        6.00
                                                                                                       ITC                             2007           17.15         5.38
                                            SBI                        5308       24.96        4.50
                                                                                                       Ranbaxy                         1504           15.37         4.82
                                            ITC                        2496       21.40        3.86
                                                                                                       SBI                             2746           12.93         4.06
     Investment Style                       Ranbaxy                    1870       19.12        3.45    HDFC                            2128           11.76         3.69
     The fund manager follows a passive     SAIL                     41745        17.57        3.17    TISCO                           3209           11.59         3.64
     style of equity investing              ICICI Bank                 6206       15.52        2.80    Hindalco                         857           10.63         3.34
                                            GAIL                       8524       14.94        2.69    L&T                             2589           10.40         3.26
     Investment objective                                                                              Satyam Computer                 2922             9.64        3.03
                                            HDFC                       2462       13.64        2.46
     Aims to provide returns that, before   Tisco                      3717       13.41        2.42    Tata Motors                     2233             9.13        2.87
     expenses, closely correspond to the                                                               Dr Reddy’s                       666             8.47        2.66
     total return of common stocks as       Tata Motors                3234       13.21        2.38
                                                                                                       Wipro                            539             8.29        2.60
     represented by the S&P CNX Nifty       HPCL                       3439       12.61        2.27
     Index under the ‘Nifty’ Plan and BSE                                                              Bajaj Auto                       822             8.07        2.53
                                            Hindalco                    920       11.40        2.06
     Sensex under the ‘BSE Sensex’ Plan.                                                               HDFC Bank                       2628             7.95        2.49
                                            BHEL                       2469       10.98        1.98    Grasim                           847             7.62        2.39
     Date of Allotment                      BPCL                       3022       10.82        1.95    HPCL                            1966             7.21        2.26
     August 27, 2001                        Satyam Computer            3160       10.42        1.88    Cipla                            452             5.43        1.70
                                            L&T                        2504       10.04        1.81    ONGC                             824             5.09        1.60
     Fund Manager                           Bajaj Auto                 1024       10.05        1.81    Tata Power                      1653             4.44        1.39
                                            NALCO                      6489        9.96        1.79    BHEL                             990             4.42        1.39
     Deepesh Pandey
                                                                                                       ACC                             1791             4.07        1.28
                                            Dr Reddy’s                  776        9.86        1.78
     Latest NAV                                                                                        MTNL                            3282             3.95        1.24
                                            HDFC Bank                  2863        8.66        1.56
     BSE Sensex Plan                                                                                   Hero Honda                      1045             3.91        1.23
                                            Grasim                      916        8.24        1.48
     Growth Plan         Rs. 14.5442                                                                   Bharti Televentures             4283             3.63        1.14
                                            HCL Tech.                  2918        7.86        1.42    Gujarat Ambuja Cements          1257             3.53        1.11
     Dividend Plan       Rs. 14.5442
                                            MTNL                       6368        7.66        1.38    BSES                             717             3.27        1.03
     NSE Nifty Plan
                                            Hero Honda                 2015        7.55        1.36    Zee Telefilms                   2394             3.10        0.97
     Growth Plan         Rs. 16.1171
                                            Cipla                       610        7.34        1.32    Total equity holdings                        313.34        98.33
     Dividend Plan       Rs. 16.1171
                                            BSES                       1394        6.35        1.15    Other current assets                           5.31         1.67
     Fund Size                                                                                         Total assets                                 318.65       100.00
                                            Sun Pharma                  947        5.67        1.02
     BSE Sensex Plan Rs.3.19 crs            Zee Telefilms              4150        5.39        0.97
                                                                                                      Performance
     NSE Nifty Plan      Rs 5.55 crs        IPCL                       2521        5.38        0.97
                                            Tata Power                 2011        5.39        0.97
     Expense Ratio                                                                                      NAV Pe r f o r m a n c e
                                            Shipping Corporation
     BSE Sensex Plan 1.50%                  of India                   2855        4.78        0.86                        Last     Last    Last     Since Tracking
     NSE Nifty Plan      1.50%              Oriental Bank              1934        4.49        0.81                      3 months 6 months 1 year inception* Error

                                            Gujarat Ambuja Cements     1558        4.37        0.79     NAV Pe r f m a n
                                                                                                       BSE Sensex Plano r16.80%c e 51.10% 48.19% 18.07% 1.92%
     Minimum Investment/
                                            Mahindra & Mahindra        1147        4.05        0.73    BSE Sensex         18.85%     58.60% 56.24% 20.42%             -
     Multiples for New Investors
                                            ACC                        1740        3.94        0.71    NSE Nifty Plan     17.81%     62.48% 56.66% 23.58% 2.46%
     Rs.5000/1000
                                            VSNL                       2868        3.88        0.70    S&P CNX Nifty      19.07%     60.43% 53.81% 19.91%             -
     Additional Investment/                 Glaxo                       753        3.70        0.67   *Compounded and annualised
     Multiples for Existing Investors       Tata Chemicals             1857        2.36        0.43    Past performance may or may not be sustained in future.

     Rs.1000/1000                           ABB                         442        2.34        0.42
                                            Digital Global              329        2.16        0.39
     Load Structure                                                                                    Rs. 10000 invested at inception in FTIIF
                                            Dabur                      2927        1.99        0.36
     Entry Load          1%                 Colgate Palmolive          1365        1.90        0.34
     Exit Load           NIL                Indian Hotels               447        1.69        0.31
                                            Tata Tea                    563        1.46        0.26
                                            Britannia                   261        1.39        0.25
                                            Smithkline Consumer         441        1.38        0.25
                                            NIIT                        377        0.81        0.15
                                            Sun Pharma (RPS)           3640        0.05        0.01

                                            Total equity holdings               549.81        99.12
                                            Other current assets                   4.92        0.88
                                            Total assets                        554.73       100.00      ____ BSE Sensex Plan Rs.14,544    ____ NSE Nifty Plan Rs.16,117



12
       Franklin Infotech Fund                                                                                                                                                   FIF
                                                 Portfolio
As of November 28, 2003
                                                   Company Name                                      No. of shares         Market Value (Rs. Lakhs)                      % of Assets
              Fund Category
                                                 Infosys                                                   86757                      4272.35                               27.38

                                                 Mphasis BFL                                             414250                       2385.04                               15.29

                                                 Digital Global                                          273451                       1795.75                               11.51

                                                 Wipro                                                    97880                       1506.28                                   9.65

                                                 Hughes Software                                         273658                       1344.48                                   8.62

                                                 EServe                                                  180998                       1284.36                                   8.23
Investment Style
                                                 HCL Tech.                                               332142                        895.12                                   5.74
The fund manager seeks growth of
capital by focusing on companies in              Satyam Computer                                         254295                        839.30                                   5.38
the information technology sector
                                                 Infotech Enterprises                                    406000                        678.43                                   4.35
Investment Objective
                                                 NIIT                                                    100000                        216.15                                   1.39
Seeks to provide long term capital
appreciation by investing primarily              Bharat Electronics                                       40000                        211.30                                   1.35
in Information Technology industry.
                                                 CMC                                                        9964                         51.41                                  0.33
Date of Allotment                                Danlaw Tech.                                             15000                            2.96                                 0.02
August 22, 1998
                                                 Unlisted equity holdings

Fund Manager                                     Planetasia                                                                                2.72                                 0.02
R. Sukumar
                                                 Total equity holdings                                                               15485.65                               99.25
Latest NAV                                       Other current assets                                                                  117.02                                   0.75
Growth Plan         Rs. 18.04
                                                 Total assets                                                                        15602.67                             100.00
Dividend Plan Rs. 12.34

Fund Size                                        Portfolio Composition and Performance
Rs.156.03 crores

                                                  General Scenario                                                     margins. However, increasing wage costs, pressure on
Turnover
                                                        Technology stocks in US witnessed heightened volatility        utilization rates and any sharp strengthening of the rupee
Portfolio Turnover         59.48%                                                                                      could cap improvement in margins.
                                                  during the month, as optimism over a recovery in tech
Volatility Measures (3 years)                     spending was tempered with concerns on valuations. The               Fund Strategy
                                                  tech-heavy Nasdaq Composite managed to end the month
Standard Deviation 13.27                                                                                                    The equity allocation of the scheme increased to
                                                  in black with a 1.45% gain. There seems to be a disconnect
R-squared                   0.98                                                                                       99.25% from 96.93% during the month. We added to our
                                                  between government data and anecdotal evidence from
Beta                        0.87                                                                                       holdings in Wipro, Hughes Software and Infotech
                                                  tech CEOs. While data indicates a cyclical turnaround in the
Sharpe Ratio*              -0.11                                                                                       Enterprises.
                                                  sector, especially in the form of telecom spending, pricing
* Risk-free rate assumed to be 6.90% (based on    power is still lacking. There are growing indications that tech
JP Morgan 3 month T-Bill Index)
                                                  spending at small and medium-sized enterprises may be
Expense Ratio                                     growing faster than at large firms. The tech capex bust since        NAV Pe r f o r m a n c e
2.39%                                             2000 is attributed to the elimination of the tech overhang,                         3 months     1 year     3 years* 5 years* Inception*
                                                  and pent-up demand is likely to have led to the current             FIF (G)          32.74%      24.67% -10.08% 30.02%                27.56%
Minimum Investment/                               ‘maintenance and repair’ tech recovery.                             FIF (D)          32.69%      24.65% -10.08% 30.01%                27.56%
Multiples for New Investors
                                                     Back r f o r domestic
                                                  N AV Pe home,m a n c e institutions as well as FIIs bought          BSE IT Index     36.69%      8.82%      -15.78%        N.A          N.A
Rs.5000/1000                                      into tech stock on the back of improved visibility for the         *Compounded and annualised   Dividends/Bonus declared assumed to be reinvested
                                                  sector the world over and accelerating offshoring trend.            Past performance may or may not be sustained in future.
Additional Investment/
Multiples for Existing Investors                  Strong headcount additions, along with strong volume
                                                  growth and possible stabilization of the rupee helped bolster
Rs.1000/1000
                                                  sentiment in tech stocks. During the month, I-Flex Solutions         Rs. 10000 invested at inception in FIF
Load Structure                                    came out with strong results with topline and bottomline
                                                  growing by 29% and 25% respectively, on a YoY basis.
Entry Load          2%
                                                  I-flex’s alliance with IBM for marketing its product, ‘Flexcube’
Exit Load           Nil
                                                  could help the company strengthen its presence in the
                                                  European and Asia-Pacific markets.
                                                                                                                                                                                       Rs. 36,085
                                                        Supply    constraints     and    weaker-than-expected
                                                  competition from MNC players have resulted in the margin
                                                  pressure easing for Indian tech majors. New contracts are
                                                  expected to be coming in at higher-than-average rates and
                                                  reduction in sales and marketing expenses would also help


                                                                                                                                                                                                      13
          Franklin FMCG Fund                                                                                                                                                 FFF
                                                      Portfolio
     As of November 28, 2003
                                                        Company Name                                    No. of Shares          Market Value (Rs. Lakhs)                  % of Assets
                   Fund Category
                                                       ITC                                                  41000                        350.32                               19.86

                                                       Hindustan Lever                                     160140                        285.45                               16.18

                                                       Asian Paints                                         60000                        185.10                               10.49

                                                       Marico                                               91000                        173.63                                9.84

                                                       Godrej Consumer                                      80000                        117.00                                6.63

                                                       Tata Tea                                             43000                        111.52                                6.32
     Investment Style
                                                       Dabur                                               136210                          92.08                               5.22
     The fund manager seeks long term
     capital appreciation by focusing on
                                                       Colgate Palmolive                                    60000                          83.31                               4.72
     Fast Moving Consumer Goods
     (FMCG) companies                                  Nirma                                                22865                          79.09                               4.48

     Investment Objective                              Smithkline Consumer                                  24053                          74.68                               4.23
     Seeks to provide long term capital
                                                       Procter & Gamble                                     10000                          73.39                               4.16
     appreciation by investing primarily
     in shares of companies operating in
                                                       Britannia                                            12000                          63.64                               3.61
     the FMCG industry
                                                       Ind Shaving                                           9340                          58.81                               3.33
     Date of Allotment
                                                       Marico (RPS)                                         91000                           8.24                               0.47
     March 31, 1999

                                                       Total equity holdings                                                            1756.26                               99.54
     Fund Manager
     K.N. Siva Subramanian                             Other current assets                                                                 7.56                               0.46

     Latest NAV                                        Total assets                                                                     1763.82                              100.00
     Growth Plan            Rs. 13.66
     Dividend Plan          Rs. 13.66

     Fund Size                                        Portfolio Composition and Performance
     Rs.17.64 crores

     Turnover                                          General Scenario                                                   the rise and is expected to pick up momentum going
     Portfolio Turnover         8.61%                        The Indian FMCG market continues to remain                   ahead. While demand in urban areas is expected to
                                                       sluggish due to the lag impact of a weak macro                     strengthen due to strong growth in services sector, the
     Volatility Measures (3 years)
                                                       environment of previous years. While the monsoon this              purchasing power in rural areas should be bolstered by
     Standard Deviation 4.71                                                                                              NAV Pe r f o r m a n c e
                                                       year has been good, which is expected to improve                   the government’s infrastructure spending and the
     R-squared           0.84
     Beta                0.75                          demand in 2004, the sector is finding hard to improve its          disintermediation of the agricultural supply chain
     Sharpe Ratio*      -0.03
                                                       topline growth. With the volume growth in the sector               Fund Strategy
     * Risk-free rate assumed to be 6.90% (based on
     JP Morgan 3 month T-Bill Index)
                                                       remaining subdued, heightened competition among                          There has been no significant change in the portfolio.
                                                       players has led to pressure on operating margin. Price
     Expense Ratio
                                                       rationalization in key categories/brands continues to
     2.50%                                                                                                                NAV Pe r f o r m a n c e
                                                       impact earnings growth. Valuations have bounced off from
                                                                                                                                               Last          Last         Last           Since
     Minimum Investment/                               historical lows during the current rally in the equity                                3 months       1 year      3 years*      inception*
     Multiples for New Investors
                                                       markets, anticipating a strong growth revival.
     Rs.5000/1000                                                                                                        FFF                  0.66%        26.01%        5.37%         6.91%
                                                          According to n c
                                                       N AV Pe r f o r m aAC eNielsen ORG Marg Data, there               ET Brandex           0.47%        16.88%       -1.70%         -4.92%
     Additional Investment/                            was a slight improvement in the industry during October          *Compounded and annualised
     Multiples for Existing Investors
                                                       with sales declining by 2.25%, as compared to a 3%-plus           Past performance may or may not be sustained in future.
     Rs.1000/1000
                                                       decline in the previous two periods. Of the top 20
     Load Structure                                    categories, 15 showed negative volume growth rates                 Rs. 10000 invested at inception in FFF & ET Brandex
     Entry Load          2%                            (from 14 in September). Growth rates for the largest
     Exit Load           Nil                           categories - soaps, tea, detergents and toothpaste
                                                                                                                                                                                        Rs. 13,660
                                                       remained negative.

                                                             Sales in the FMCG sector tend to lag overall
                                                                                                                                                                                        Rs. 7,902
                                                       economic trends i.e., they will be the last to affected in a
                                                       slowdown and the last to pick up in a recovery. In a
                                                       growth economy, the sector adds value over the medium
                                                       to long term. If one looks at the economic data in the last
                                                       year or so, it is clear that economic growth has been on                                 ____ FFF   ____ ET Brandex



14
     Franklin Pharma Fund                                                                                                                                           FPF
                                                 Portfolio
As of November 28, 2003
                                                   Company Name                                    No. of shares          Market Value (Rs. Lakhs)                 % of Assets
              Fund Category
                                                  Ranbaxy                                              156117                       1595.67                           19.52

                                                  Dr Reddy’s                                             93356                      1187.16                           14.52

                                                  Cipla                                                  71737                        861.81                          10.54

                                                  Wockhardt                                            124739                         787.17                           9.63

                                                  Sun Pharma                                           123496                         744.37                           9.11

                                                  Pfizer                                               104864                         473.83                           5.80
Investment Style
                                                  Aventis Pharma                                         76260                        401.01                           4.91
The fund manager seeks to achieve
long term capital appreciation by                 Jubilant Organosys                                     70329                        355.16                           4.34
focusing   on       companies      in
Pharmaceutical / Life Sciences sector             Glaxo                                                  68346                        334.83                           4.10

                                                  IPCA Labs                                              65000                        315.90                           3.86
Investment objective
                                                  Aurobindo Pharma                                       70000                        211.75                           2.59
Seeks to provide long term capital
appreciation by investing primarily in            Wyeth Lederle                                          37621                        144.77                           1.77
shares of companies operating in
Pharmaceutical/ Life Sciences industry            Burroughs Wellcome                                     19350                        123.49                           1.51

                                                  Monsanto Chemicals                                      8220                            95.09                        1.16
Date of Allotment
                                                  Cadila                                                 20000                            75.60                        0.92
March 31, 1999
                                                  Sun Pharma (RPS)                                     122340                              1.71                        0.02
Fund Manager
                                                  Total equity holdings                                                             7709.32                           94.31
R. Sukumar
                                                  Other current assets                                                                464.95                           5.69
Latest NAV                                        Total assets                                                                      8174.27                         100.00
Growth Plan         Rs. 14.92
Dividend Plan Rs. 14.92

Fund Size                                        Portfolio Composition and Performance
Rs.81.74 crores
                                                  General Scenario                                                   advantage. Overall, the future looks bright for the industry
Turnover
                                                        The Indian pharmaceutical industry continues to evolve       with the breadth and depth set to improve with quality
Portfolio turnover         63.32%                 and recent trends indicate that mid and small companies in         companies in the mid and small cap segment looking to
                                                  the sector are looking to emulate the successes of domestic        emulate the successes of their larger counterparts.
Volatility Measures (3 years)                     pharma majors like Ranbaxy and Dr.Reddy’s. These two               Fund Strategy
Standard Deviation        5.90                    companies have established their presence in regulated
                                                                                                                           The equity exposure of the fund increased during the
R-squared                 0.91                    markets like US and Europe with generics and APIs, and
Beta                      0.91                                                                                       month to 94.31% from 88.56%. We added to our holdings
                                                  currently derive most of their revenues from exports.
Sharpe Ratio*             0.11                                                                                       in stocks like Wockhardt, Glaxo and IPCA Labs.
                                                  Meanwhile, cost pressures are driving global pharma
* Risk-free rate assumed to be 6.90% (based on    companies to outsource manufacturing and research
JP Morgan 3 month T-Bill Index)
                                                  activities to countries like India, where companies have
Expense Ratio                                     developed low-cost processes.                                      NAV Pe r f o r m a n c e

                                                       The generics market is expected to grow steadily in the                        Last            Last         Last      Since
2.50%
                                                  coming years aided by patent expiries and successful patent                       3 months         1 year      3 years* inception*
Minimum Investment/
Multiples for New Investors                       challenges. This combined with the fact that many                 FPF              13.12%         76.78%        16.07%      8.95%
                                                  N AV Per f o r m a c e
                                                  developed countriesn are increasingly looking to reduce           ET Lifex         12.95%         81.57%        16.41%      10.05%
Rs.5000/1000
                                                  healthcare costs through new legislations (eg., Medicare Bill
Additional Investment/                                                                                             *Compounded and annualised
                                                  in US) which will allow smoother introduction of generics.
Multiples for Existing Investors                                                                                    Past performance may or may not be sustained in future.
                                                  Indian companies with their chemistry skills, ability in
Rs.1000/1000                                      developing non-infringing processes and low-cost                   Rs. 10000 invested at inception in FPF & ET Lifex
                                                  manufacturing have an edge. Besides increasing number of
Load Structure                                    companies are setting up facilities that comply with key
Entry Load          2%                            regulatory standards the world over at a fraction of the costs
Exit Load           Nil                           incurred in developed countries.
                                                        The increasing use of generics the world over and low
                                                  research productivity is impacting the margins and
                                                  profitability of global pharmaceutical companies, forcing
                                                  them to outsource many functions including drug discovery,
                                                  clinical services and manufacturing. Indian companies with
                                                  access to a large pool of skilled chemists, track record of
                                                  innovation and approved manufacturing facilities have an                     ____ FPF                   ____ ET Lifex Rs. 15,630
                                                                                                                                             Rs. 14,920



                                                                                                                                                                                       15
          Franklin Internet Opportunities Fund                                                                                                                         FIOF
                                                      Portfolio
     As of November 28, 2003
                                                        Company Name                                    No. of shares        Market Value (Rs. Lakhs)                      % of Assets
                   Fund Category
                                                       Infosys                                              91179                      4490.11                                  18.51
                                                       HCL Tech.                                           982545                      2647.96                                  10.92
                                                       Satyam Computer                                     800000                      2640.40                                  10.88
                                                       Digital Global                                      353033                      2318.37                                   9.56
                                                       Wipro                                               146831                      2259.58                                   9.31
                                                       ICICI Bank                                          798800                      1996.20                                   8.23
                                                       HDFC Bank                                           568025                      1717.99                                   7.08
                                                       Mphasis BFL                                         262508                      1511.39                                   6.23
     Investment Style
                                                       Blue Dart                                           641918                       879.43                                   3.63
     The fund manager seeks long term                  GAIL                                                458305                       804.33                                   3.32
     capital appreciation by focusing on
     companies that are well-positioned to             I-Flex Solutions                                    100000                       802.20                                   3.31
     benefit from the internet                         Television Eighteen                                 381315                       743.37                                   3.06
                                                       Bharti Televentures                                 845331                       717.26                                   2.96
     Investment Objective
                                                       Infotech Enterprises                                101757                       170.04                                   0.70
     Seeks to provide long term capital                Hughes Software                                      14428                        70.88                                   0.29
     appreciation by capitalising on
     investment opportunities created by               Unlisted equity holdings
     the dramatic growth of the internet               India Infoline                                                                    22.98                                   0.09
     and its performed impact on                       Planetasia                                                                          1.37                                  0.01
     individuals and businesses
                                                       Quantum Info.                                                                       0.80                                  0.00
     Date of Allotment                                 Numero Uno                                                                          0.01                                  0.00
     February 21, 2000                                 Partly Convertible Debentures
                                                       Television Eighteen ZCSPCD’s                         29986                        70.47                                   0.29
     Fund Manager
                                                       Total equity holdings                                                        23794.67                                    98.09
     K.N. Siva Subramanian
                                                       Partly convertible debentures                                                   70.47                                     0.29
     Latest NAV                                        Other current assets                                                           392.42                                  1.62
     Growth Plan   Rs. 8.00                            Total assets                                                                 24257.56                                100.00
     Dividend Plan Rs. 8.00

     Fund Size

     Rs. 242.58 crores                                Portfolio Composition and Performance

     Turnover

     Portfolio Turnover         52.58%                 General Scenario                                                     reduction in sales and marketing expenses would also help
                                                             Technology stocks in US witnessed heightened volatility        margins. However, increasing wage costs, pressure on
     Volatility Measures (3 years)                     during the month, as optimism over a recovery in tech                utilization rates and any sharp strengthening of the rupee
                                                                                                                            could cap improvement in margins.
     Standard Deviation            9.34                spending was tempered with concerns on valuations. The
     R-squared                     0.95                tech-heavy Nasdaq Composite managed to end the month                 Fund Strategy
     Beta                          0.71                in black with a 1.45% gain. There seems to be a disconnect
     Sharpe Ratio*                -0.01                                                                                          The equity allocation of the scheme has increased
                                                       between government data and anecdotal evidence from
                                                                                                                            marginally to 98.09% during the month. We added to our
     * Risk-free rate assumed to be 6.90% (based on    tech CEOs. While data indicates a cyclical turnaround in the
                                                                                                                            holdings in Wipro, Eserve and Infotech Enterprises.
     JP Morgan 3 month T-Bill Index)                   sector, especially in the form of telecom spending, pricing
     Expense Ratio                                     power is still lacking. There are growing indications that tech
     2.33%                                             spending at small and medium-sized enterprises may be                NAV Pe r f o r m a n c e
                                                       growing faster than at large firms. The tech capex bust since
                                                                                                                                              Last             Last        Last            Since
     Minimum Investment/                               2000 is attributed to the elimination of the tech overhang,
     Multiples for New Investors                                                                                                            3 months          1 year     3 years*       inception*
                                                       and pent-up demand is likely to have led to the current
                                                                                                                           FIOF              33.33%           66.67%       6.37%         -5.75%
     Rs.5000/1000                                      ‘maintenance and repair’ tech recovery.
                                                       N AV Pe r f o r m a n c e                                           ET Mindex         30.05%           13.08%      -16.20%        -33.47%
                                                              Back home, domestic institutions as well as FIIs bought
     Additional Investment/
                                                       into tech stock on the back of improved visibility for the         *Compounded and annualised
     Multiples for Existing Investors                                                                                      Past performance may or may not be sustained in future.
                                                       sector the world over and accelerating offshoring trend.
     Rs.1000/1000                                      Strong headcount additions, along with strong volume                 Rs. 10000 invested at inception in FIOF & ET Mindex
     Load Structure                                    growth and possible stabilization of the rupee helped bolster
                                                       sentiment in tech stocks. During the month, I-Flex Solutions
     Entry Load          2%                            came out with strong results with topline and bottomline
     Exit Load           Nil                           growing by 29% and 25% respectively, on a YoY basis.                                                                                Rs. 8000
                                                       I-flex’s alliance with IBM for marketing its product, ‘Flexcube’
                                                       could help the company strengthen its presence in the
                                                       European and Asia-Pacific markets.
                                                                                                                                                                                          Rs. 2152
                                                            Supply constraints and weaker-than-expected
                                                       competition from MNC players have resulted in the margin
                                                       pressure easing for Indian tech majors. New contracts are
                                                       expected to be coming in at higher-than-average rates and                                  ____ FIOF    ____ ET Mindex



16
     FT India PE Ratio Fund                                                                                                                FTIPERF
                                          Portfolio
As of November 28, 2003
                                           Company Name                     No. of      Market Value     % of       Company Name                No. of      Market Value       % of
                                                                            shares       Rs. Lakhs      Assets                                  shares       Rs. Lakhs        Assets
             Fund Category
                                           Equity holdings                                                          Sun Pharma                   2515           15.07           0.78
                                           Reliance Industries              37774         183.98          9.51      Zee Telefilms               11108           14.42           0.75
                                           Hindustan Lever                  59537         106.12          5.48      IPCL                         6725           14.35           0.74
                                           Wipro                             6297             96.84       5.01      Tata Power                   5335           14.31           0.74
                                           Infosys                           1791             88.22       4.56      Shipping Corporation
                                           SBI                              14217             66.86       3.46      of India                     7577           12.68           0.66
                                           ITC                               6706             57.50       2.97      Oriental Bank                5222           12.12           0.63
                                           Ranbaxy                           5033             51.45       2.66      Gujarat Ambuja Cements       4168           11.68           0.60
Investment Style                           SAIL                         111827                47.08       2.43      Mahindra & Mahindra          3067           10.82           0.56
                                           ICICI Bank                       16596             41.51       2.15      ACC                          4631           10.49           0.54
The fund manager follows a passive
investment style for the equity            GAIL                             22917             40.17       2.08      VSNL                         7786           10.53           0.54
component, and seeks steady income         HDFC                              6605             36.60       1.89      Glaxo                        2037           10.01           0.52
with low volatility from the fixed                                                                                  Tata Chemicals               4872            6.20           0.32
income component of the portfolio          Tisco                             9978             36.01       1.86
                                           Tata Motors                       8661             35.38       1.83      ABB                          1135            6.02           0.31
Investment Objective                       HPCL                              9214             33.79       1.75      Digital Global                853            5.59           0.29
                                           Hindalco                          2497             30.94       1.60      Dabur                        7821            5.31           0.27
Seeks to provide superior risk-adjusted
                                           BHEL                              6573             29.23       1.51      Colgate Palmolive            3649            5.08           0.26
returns through a dynamically
balanced portfolio of equities and debt    BPCL                              8144             29.17       1.51      Indian Hotels                1248            4.73           0.24
/ money market instruments.                Satyam Computer                   8550             28.20       1.46      Tata Tea                     1547            4.01           0.21
                                           L&T                               6696             26.84       1.39      Britannia                     713            3.79           0.20
Date of Allotment                                                                                                   Smithkline Consumer          1206            3.77           0.19
                                           Bajaj Auto                        2747             26.97       1.39
February 25, 2002                          NALCO                            17416             26.72       1.38      NIIT                          984            2.13           0.11
                                           Dr Reddy’s                        2060             26.18       1.35      Sun Pharma (RPS)            20860            0.29           0.02
Fund Manager
                                           HDFC Bank                         7635             23.10       1.19      Debt holdings               Rating     Market Value % of
Deepesh Pandey                             Grasim                            2467             22.18       1.15                                              Rs. Lakhs   Assets

                                           HCL Tech.                         7793             20.99       1.08      Bharti Televentures - CP     P1+           286.28         14.80
Latest NAV
                                           MTNL                             17174             20.67       1.07      Total equity holdings                    1472.47        76.11
Growth Plan        Rs. 13.81               Hero Honda                        5343             20.01       1.03      Total debt holdings                       286.28        14.80
Dividend Plan      Rs. 13.81               Cipla                             1623             19.52       1.01      Other current assets                      176.12         9.09
Fund Size                                  BSES                              3696             16.84       0.87      Total assets                             1934.87       100.00

Rs.19.35 crores

Turnover                                  Portfolio Composition and Performance
Portfolio Turnover        119.44%
                                            Fu nd M an a g e r ’ s C o m m e n ta r y                                H o w d o e s th e s c h e m e w ork ?
Expense Ratio
                                                   The equity exposure of the fund varied in line with                    The equity component of the scheme replicates
2.50%                                       N AV Per f o r m a n c e                                                 the NSE Nifty Index and the cash component is
Minimum Investment/                         the PE ratio of Nifty and currently stands at 76.11% as
Multiples for New Investors                                                                                          invested in quality debt and money market
                                            the PE ratio is between 12-16.
                                                                                                                     instruments. The allocation to equities is determined
Rs.5000/1000
                                                                                                                     based on the month-end weighted average PE ratio
Additional Investment/                                                                                               of the 50 stocks that constitute the NSE Nifty Index
Multiples for Existing Investors                                                                                     and adjustment (if any) are made during the first
Rs.1000/1000                                N AV Per f o r m a n c e                                                 week of the following month.

Load Structure                                                     Last         Last           Last       Since
                                                                 3 months     6 months        1 year   inception*
Entry Load         1.5%
Exit Load          NIL                     PE Ratio Fund         15.18%        53.44%         47.86%    20.18%       P E R a ti o F un d ’ s I n v e s tm e nt S t rat e gy

                                          *Compounded and annualised                                                 If PE ratio of NSE Nifty            ... the allocation to
                                           Past performance may or may not be sustained in future.
                                                                                                                        falls in this band...             NSE Nifty Index
                                                                                                                                                           stocks is..%

                                                                                                                          Upto 12                              90-100
                                            As s et A l l o c a ti o n f o r D e c e m b e r 2 0 0 3                 NAV Pe r f o r m a n c e
                                                                                                                           12-16                                70-90
                                            The weighted average PE ratio of NSE Nifty as on                                     16-20                          50-70
                                            28.11.2003 was 15.48. Hence, the asset allocation
                                                                                                                                 20-24                          30-50
                                            for the fund in December 2003 will be...
                                            Equities                                      -     70% to 90%                       24-28                          10-30

                                            Debt/Money Market Insturments -                     10% to 30%                      Above 28                        0-10


                                                                                                                                                                                       17
         FT India Asset Allocation Fund                                                                                                         FTIAAF
                                              Portfolio*
     As of November 28, 2003
                                              Company Name                                                 % of      Company Name                               Rating           % of
                                                                                                          Assets                                                                Assets
                 Fund Category
                                              Equity holdings                                                        Hindustan Lever                                                3.09

                                              Infosys                                                       7.25     TISCO                                                          2.87

                                              Hero Honda                                                    6.82     ITC                                                            2.00

                                              Reliance Industries                                           6.41     Maruti Udyog                                                   1.33

                                              HCL Tech.                                                     5.77     Total equity holdings              Rs.850.85 lakhs         92.43

     Investment Style                         Satyam Computer                                               5.56     Other current assets                Rs.69.70 lakhs             7.57

     The fund manager maintains the           Digital Global                                                5.45     Total assets                       Rs.920.55 lakhs 100.00
     steady state asset allocation under
     each of the five plans with monthly      ICICI Bank                                                    5.43
     rebalancing and seeks steady capital                                                                            Debt Holdings
     appreciation from a diversified          Ashok Leyland                                                 5.24
     portfolio of equities and regular                                                                               Bharti Televentures - CP                   P1+             61.31
     income from the fixed income             L&T                                                           4.91
     component by managing interest rate                                                                             Reliance Industries                        AAA             10.29
     movements and credit risk.               Grasim                                                        4.83     Panatone Finvest                        AAA (SO)           10.22

     Investment objective                     HPCL                                                          3.99     Lakshmi General Finance                    AAA                 7.07
     Seeks to provide investors a portfolio   BPCL                                                          3.87     Power Grid Corporation                     AAA                 4.96
     of equities and debt/money market
     instruments, in line with their          SBI                                                           3.84     IDBI                                       AA+                 2.85
     chosen asset allocation plan.
                                              HDFC Bank                                                     3.61     ACC                                         AA                 2.04
     Date of Allotment
                                              Hindalco                                                      3.50     Total debt holdings                Rs.1460.07 lakhs        98.74
     February 25, 2002
                                              Ranbaxy                                                       3.36     Other current assets                Rs.18.60 lakhs             1.26
     Fund Manager
                                              Asian Paints                                                  3.30     Total assets                       Rs.1478.67 lakhs 100.00
     K.N. Siva Subramanian &
     Rahul Goswami                            * All plans have the same portfolio with the weightage of each scrip depending on the equity/debt ratio of each plan

     Latest NAV

     Pure Growth               Rs. 15.2291
     Steady Growth             Rs. 14.4657
                                              Portfolio Composition and Performance
     Balanced Growth           Rs. 13.4410
     Conservative Growth       Rs. 12.8676
     Inflation Hedge           Rs. 11.8879     Fu nd M an a g e r ’ s C o m m e n ta r y                              NAV Pe r f o r m a n c e

     Fund Size                                      HCL Technologies and Ashok Leyland were the new                                           Last     Last            Last     Since
                                               N AV Per the m a n portfolio. On the debt side, we exited
                                               additions to f o requity c e                                                                 3 months 6 months         1 year inception*
     Rs.23.99 crores
                                               our gilt positions and added debentures such as Reliance              Pure Growth             15.73%      48.49%       70.27%    27.06%
                                               Industries, Panatone Finvest and Lakshmi General Finance.             Steady Growth           14.32%      39.36%       55.12%    23.40%
     Turnover
                                                                                                                     Balanced Growth          9.77%      28.71%       39.40%    18.34%
     Portfolio Turnover     190.13%
                                                                                                                     Conservative Growth      8.20%      21.35%       30.79%    15.44%
                                               Ho w d o e s th e s c h e m e w o r k ?
     Expense Ratio                                                                                                   Inflation Hedge          5.09%      11.19%       15.83%    10.35%
                                                    FT India Asset Allocation Fund offers a choice of five
     2.25%                                                                                                          *Compounded and annualised
                                               asset allocation plans, from the most conservative to the most        Past performance may or may not be sustained in future.
                                               aggressive, and maintains your chosen asset allocation
     Minimum Investment/
     Multiples for New Investors               through all market conditions through monthly rebalancing.

     Rs.5000/1000
                                               Rs. 10000 invested at inception in FTIAAF
     Additional Investment/
     Multiples for Existing Investors                                                                                  A choice of five plans
     Rs.1000/1000
                                                                                                                       Plans                            Steady State Asset Allocation
     Load Structure
                                                                                                                                                            Equity       Debt / Money
     Entry Load         1.5%                                                                                                                                 (%)              market
     Exit Load          NIL                                                                                                                                              instruments (%)

                                                                                                                       Pure Growth Plan                       90               10
                                                                                                                       Steady Growth Plan                     70               30
                                                                                                                       Balanced Growth Plan                   50               50
                                                 ––– Pure Growth     Rs.15229   ––– Conservative                       Conservative Growth Plan               30               70
                                                 ––– Steady Growth   Rs.14466       Growth            Rs.12868
                                                 ––– Balanced Growth Rs.13441   ––– Inflation Hedge   Rs.11888         Inflation Hedge Plan                   10               90


18
    FT India Balanced Fund                                                                                                                               FTIBF
                                        Portfolio
As of November 28, 2003
                                         Company Name                         No. of         Market Value     % of    Company Name                 No. of     Market Value     % of
                                                                              shares          Rs. Lakhs      Assets                                shares      Rs. Lakhs      Assets
            Fund Category
                                         Equity holdings                                                              Oil & Gas Refining
                                         Aluminium                                                                    & Marketing
                                                                                                                      BPCL                         100000        358.15        3.20
                                         Hindalco *                             59431           737.21        6.59
                                                                                                                      HPCL                          90019        330.32        2.95
                                         Auto Parts & Equipment
                                                                                                                      Packaged Foods
                                         MICO *                                     7277        867.67        7.75
                                                                                                                      Britannia                     58594        310.75        2.78
                                         Automobile Manufacturers
                                                                                                                      Smithkline Consumer           55137        171.20        1.53
                                         Maruti Udyog                         100750            347.44        3.10
                                                                                                                      Pharmaceuticals
Investment Style                         Banks
                                                                                                                      Cipla                         22184        266.51        2.38
                                         SBI *                                165000            776.74        6.94
The fund manager seeks to strike an                                                                                   Sun Pharma                    39662        239.06        2.14
optimum balance between growth           Construction
                                                                                                                      Sun Pharma (RPS)             100000           1.40       0.01
and stability, by maintaining a          & Engineering
diversified portfolio of equities and                                                                                 Tobacco
                                         L&T                                    75000           301.35        2.69
managing interest rate movements                                                                                      ITC                           32500        277.70        2.48
and credit risk on the fixed income      Diversified Chemicals
component                                                                                                             Unlisted equity holdings
                                         Pidilite                               23720            71.16        0.64
                                                                                                                      Globsyn Tech.                                 0.03       0.00
                                         Electrical Components
Investment Objective                                                                                                  Debt holding                 Rating     Market Value % of
                                         & Equipments
                                                                                                                                                               Rs. Lakhs   Assets
Seeks to provide long term growth of     Bharat Electronics                     29508           155.88        1.39
capital and current income                                                                                            Lakshmi General Finance *         AAA      522.96        4.67
                                         Gas Utilities
                                                                                                                      Citicorp Finance
Date of Allotment                        GAIL *                               205000            359.77        3.21    Fleet Trust - PTC *          AAA (SO)      498.42        4.45
                                         Heavy Electrical                                                             Power Grid Corporation *          AAA      448.79        4.01
December 10, 1999
                                         Equipment
                                                                                                                      IOC PTC Loan Trust                AAA      319.24        2.85
Fund Manager                             Thermax                                71740           231.40        2.07    Madras Cements                    AA       275.88        2.46
                                         Industrial Conglomerates                                                     IDBI                              AA+      262.69        2.34
Deepesh Pandey & Rahul Goswami
                                         Grasim *                               70000           629.65        5.63    ACC                               AA        50.19        0.45
Latest NAV                               IT Consulting & Services                                                     Total equity holdings                     7704.83       68.84
Growth Plan      Rs. 14.33               Digital Global *                       97450           639.95        5.72    Total debt holdings                       2378.17       21.23
Dividend Plan Rs. 12.83                  Satyam Computer *                    139000            458.77        4.10    Other current assets                      1109.17        9.93

Fund Size                                Mphasis BFL                            30000           172.72        1.54    Total assets                             11192.17      100.00

Rs.111.92 crores                                                                                                                                                     * Top 10 holdings

Bond Portfolio                          Portfolio Composition and Performance
Average maturity       2.53 years
Yield to maturity      5.86%
                                          Fu nd M an a g e r ’ s C o m m e n ta r y                                    Sector Allocation - Equity Holdings
Expense Ratio                                   The equity allocation of the scheme fell marginally to 68.84%
2.50%                                     from around 69% during the month as we shuffled our portfolio. On
                                          the equity side, we added L&T, Thermax and Mphasis BFL. L&T, the
Minimum Investment/                       engineering and construction major which reported robust
Multiples for New Investors               quarterly results, has been witnessing strong order booking in both
                                          domestic and international markets. With the demerger of its
Rs.5000/1000                              capital-intensive cement division, the company would be able to
                                          allocate more capital to its core business of E&C and strengthen its
Additional Investment/                    balance sheet further. On the debt side,we added debentures of
Multiples for Existing Investors          Madras Cements while exiting our gilt positions.

Rs.1000/1000
                                          N AV Per f o r m a n c e
Load Structure                                                       Last    Last                Last      Since
                                                                   3 months 1 year             3 years* inception*
Entry Load          1.5%
Exit Load           NIL                  FTIBF                      14.18%          56.61%     20.15%       9.49%
                                         Crisil Balanced                                                               Composition by Assets
                                         Fund Index                 11.62%          34.40%       N.A        N.A
                                        *Compounded and annualised
                                         Past performance may or may not be sustained in future.

                                                      SIP can provide healthy returns over time
                                                          *If you had invested in FTIBF…….
                                          Monthly investment                               Rs.1,000
                                          Number of investment periods (since inception)  47 months
                                          N AV Per f o r m a n c e
                                          Total investment                               Rs. 47,000
                                                                                                                               s Equity                           68.84%
                                          Value of investment (As of November 28, 2003) Rs. 74,414
                                                                                                                               s Debt                             21.23%
                                          Return on investment                              24.43%
                                                                                                                               s Other current assets              9.93%
                                          * Load is not taken into consideration.


                                                                                                                                                                                         19
          Templeton India Pension Plan                                                                                                                              TIPP
                                                    Portfolio
     As of November 28, 2003
                                                     Company Name                       No. of    Market Value      % of     Company Name               Rating     Market Value     % of
                                                                                        shares     Rs. Lakhs       Assets                                           Rs. Lakhs      Assets
                  Fund Category
                                                     Aluminium                                                               Debt Holdings
                                                     Hindalco *                          20316      252.01          5.56     Lakshmi General Finance*     AAA        418.37         9.22
                                                     Auto Parts & Equipment
                                                     MICO                                   900     107.31          2.37     Reliance Industries *        AAA        355.03         7.83
                                                     Banks
                                                     ICICI Bank *                        71814      179.46          3.96     Panatone Finvest *         AAA (SO)     352.63         7.77
                                                     HDFC Bank                           33000       99.81          2.20
                                                                                                                             Grasim *                     AAA        336.00         7.41
                                                     SBI                                 20000       94.15          2.08
     Investment Style                                Construction &
                                                                                                                             Indian Railways
     The fund manager seeks steady capital           Engineering
                                                                                                                             Financial Corporation*       AAA        217.30         4.79
     appreciation by maintaining a                   L&T                                 26000      104.47          2.30
     diversified portfolio of equities and           Industrial
     seeks to earn regular income on the                                                                                     Power Grid Corporation*      AAA        149.60         3.30
                                                     Conglomerates
     fixed income component by managing
     interest rate movements and credit risk.        Grasim                              12975      116.71          2.57
                                                                                                                             GE Capital Services        AAA (SO)     134.67         2.97
                                                     IT Consulting &
     Investment Objective                            Services
                                                                                                                             MRF                          AAA        103.31         2.28
     Seeks to provide regular income under           Infosys *                            4236      208.60          4.60
     the Dividend Plan and capital                   Mphasis BFL                         10000       57.58          1.27     IDBI                         AA+         97.28         2.15
     appreciation under the Growth Plan
                                                     Oil & Gas Refining
     Date of Allotment                               & Marketing                                                             Hongkong Bank                N.R         65.50         1.44
                                                     BPCL *                              43400      155.44          3.43
     March 31, 1997
                                                     HPCL                                20000       73.39          1.62     ACC                          AA          50.19         1.11
     Fund Manager                                    Packaged Foods
                                                                                                                             NALCO                        AAA         16.36         0.36
     R. Sukumar & Rahul Goswami                      Nestle                              10000       60.01          1.32

     Latest NAV                                      Pharmaceuticals
                                                                                                                             Total equity holdings                 1800.33         39.71
                                                     Sun Pharma                          18800      113.32          2.50
     Growth Plan         Rs. 25.97
     Dividend Plan       Rs. 14.99                   Wockhardt                           15000       94.66          2.09     Total debt holdings                   2296.24         50.63
                                                     Dr Reddy’s                           3200       40.69          0.90
     Fund Size                                                                                                               Other current assets                    439.70         9.66
                                                     Tobacco
     Rs.45.36 crores
                                                     ITC                                  5000       42.72          0.94     Total assets                          4536.27        100.00
     Bond Portfolio
                                                                                                                                                                           * Top 10 holdings
     Average maturity       3.50 years
     Yield to maturity      5.91%
                                                    Portfolio Composition and Performance
     Expense Ratio
     2.25%
                                                      Fu nd M an a g e r ’ s C o m m e n ta r y                               Sector Allocation - Equity Holdings
     Minimum Investment/
     Multiples for New Investors                           The equity exposure of the scheme increased
     Rs.500/500                                       marginally to 39.71%, while the debt allocation
     Additional Investment/                           reduced to 50.63% as we exited our gilt positions. On
     Multiples for Existing Investors                 the equity side, we added L&T, Wockhardt, Mphasis BFL
     Rs.500/500                                       and Nestle. Reliance Industries and Panatone Finvest
                                                      were added to the debt portfolio.
     Load Structure
     Entry Load       1.00%*
     Exit Load        3%, if redeemed before          N AV Per f o r m a n c e
                      the age of 58 years                                    Last    Last    Last     Last      Since
                      (subject to a 3 year
                                                                           3 months 1 year 3 years* 5 years* inception*
                      lock-in period)
                      NIL, if redeemed after         Pension Plan (G)        8.89% 36.18% 16.31% 15.24% 15.39%
                      the age of 58 years
                                                     Pension Plan (D)        8.94% 36.27% 16.33% 15.24% 15.40%
                             * w.e.f. Oct 1, 2003
                                                                                                                              Composition by Assets
     Tax Rebate                                     *Compounded and annualised Dividends declared assumed to be reinvested
                                                     Past performance may or may not be sustained in future.
     Investments upto Rs. 70,000 in a
     financial year qualify for a tax rebate
     under Section 88 (2) (xiii c) of the                         SIP can provide healthy returns over time
     Income Tax Act, 1961                                             *If you had invested in TIPP…….

                                                      Monthly investment                                      Rs.1,000
                                                      Number of investment periods (since inception)         80 months
                                                      N AV Per f o
                                                      Total investment r m a n c e                           Rs. 80,000
                                                      Value of investment (As of November 28, 2003) Rs.139,532
                                                                                                                                     s Equity                          39.71%
                                                      Return on investment                                       16.48%
                                                                                                                                     s Debt                            50.63%
                                                      * Load is not taken into consideration.                                        s Other current assets             9.66%



20
    Franklin India Balanced Fund                                                                                                                               FIBF
                                      Portfolio
As of November 28, 2003
                                       Company Name                       No. of        Market Value          % of     Company Name              No. of    Market Value     % of
                                                                          shares         Rs. Lakhs           Assets                              shares     Rs. Lakhs      Assets
            Fund Category
                                       Equity holdings                                                                 Oil & Gas Refining
                                       Aluminium                                                                       & Marketing
                                       Hindalco *                         19300             239.41            6.05     HPCL *                    50000          183.48      4.64
                                       Auto Parts &                                                                    Packaged Foods
                                       Equipment
                                                                                                                       Britannia                 19752          104.75      2.65
                                       MICO *                               1835            218.80            5.53
                                                                                                                       GSK Consumer
                                       Automobiles                                                                     Healthcare                20283           62.98      1.59
                                       Manufacturers
Investment Style                                                                                                       Pharmaceuticals
                                       Maruti Udyog                       30000             103.46            2.61
                                                                                                                       Cipla *                   10700          128.54      3.25
The Fund Managers follow a conser-     Banks
vative and prudent exposure to                                                                                         Wockhardt                 16100          101.60      2.57
                                       SBI *                              52120             245.35            6.20
equity and debt
                                       Construction &                                                                  Sun Pharma                  136            0.82      0.02
                                       Engineering                                                                     Steel
Investment Objective
                                       L&T                                25000             100.45            2.54     Maharashtra Seamless      29764           59.77      1.51
Seeks to generate long-term capital
appreciation and current income        Diversified Chemicals                                                           Tobacco
                                       Pidilite                           33245                  99.74        2.52     ITC                       12000          102.53      2.59
Date of Allotment                      Electrical Components                                                           Company Name              Rating    Market Value     % of
August 4, 2000                         & Equipment                                                                                                          Rs. Lakhs      Assets
                                       Bharat Electronics *               25000             132.06            3.34     PFSL PTC - Citibank MBS* AAA(SO)         343.71      8.69
Fund Manager                           Gas Utilities
                                                                                                                       Madras Cements *            AA-          275.88      6.97
Deepesh Pandey & Rahul Goswami         GAIL                               70000             122.85            3.10
                                                                                                                       Power Grid Corporation*    AAA           205.36      5.19
                                       Heavy Electrical
Latest NAV                                                                                                             Reliance Industries        AAA           107.46      2.71
                                       Equipment
Growth Plan         Rs. 15.69          Thermax                            30000                  96.77        2.44     PFSL PTC - Citibank       AAA(SO)         64.63      1.63
Dividend Plan       Rs. 13.55          IT Consulting                                                                   Total equity holdings                   2532.70     64.00
                                       & Services
Fund Size                                                                                                              Total debt holdings                      997.04     25.19
                                       Digital Global *                   32000             210.14            5.31     Call, Cash &
Rs. 39.57 crores
                                       Mphasis BFL                        19500             112.27            2.84     Other Assets                             427.62     10.81
                                       Satyam Computer                    32400             106.94            2.70     Net Assets                              3957.35    100.00
Bond Portfolio

Average maturity        2.80 years                                                                                                                                   * Top 10 holdings
Yield to maturity       6.18%
                                      Portfolio Composition and Performance
Expense Ratio

2.21%                                                                                                                   Sector Allocation - Equity Holdings
                                        Fu nd M an a g e r ’ s C o m m e n ta r y
Minimum Investment/
Multiples for New Investors
                                               We reshuffled our equity portfolio during the month.
                                        We added L&T, Satyam Computers, Wockhardt and
Rs.5000/1000
                                        Mphasis BFL, to the equity portfolio. On the debt
Additional Investment/                  side,we added debentures of Madras Cements while
Multiples for Existing Investors        exiting our gilt positions. The exposure to cash and other
Rs.1000/1000                            current assets has gone up to 10.81%.

Load Structure

Entry Load      1.50%                   N AV Per f o r m a n c e
Exit Load       NIL                                            Last           Last           Last            Since
                                                             3 months        1 year        3 years*       inception*    Composition by Assets
                                       FIBF (G)               10.96%        54.28%          18.87%         14.31%
                                       FIBF (D)               10.82%        54.20%          17.31%         12.91%
                                       Crisil Balanced
                                       Fund Index             11.62%        34.40%               N.A         N.A
                                      *Compounded and annualised         Dividends declared assumed to be reinvested
                                       Past performance may or may not be sustained in future.

                                                    SIP can provide healthy returns over time
                                                        *If you had invested in FIBF…….
                                        Monthly investment                                                 Rs.1,000
                                        N AV of investment periods
                                        Number Per f o r m a n c e (since inception)                      40 months
                                        Total investment                                                 Rs. 40,000      s Equity                                64.00%
                                        Value of investment (As of November 28, 2003)                    Rs. 63,735      s Debt                                  25.19%
                                        Return on investment                                                29.24%
                                                                                                                         s Call, Cash & other current assets     10.81%
                                        * Load is not taken into consideration.


                                                                                                                                                                                         21
         Templeton India Income Fund                                                                                                                                                TIIF
                                               Portfolio
     As of November 28, 2003
                                                Company Name                         Rating      Market Value        % of       Company Name                      Rating      Market Value         % of
                                                                                                  Rs. Lakhs         Assets                                                     Rs. Lakhs          Assets
                 Fund Category
                                                 Reliance Industries *                 AAA           11785.93        6.21        Power Grid Corporation             AAA           3297.80           1.74
                                                 Hindalco Industries #                 AAA             4079.91       2.15        Bharat Heavy Electricals           AAA           3267.30           1.72
                                                 Loan Securitisation Trust -                                                     SBI                                AAA           2941.96           1.55
                                                 Bajaj Auto (PTC)                   AAA (SO)           3465.96       1.82
                                                                                                                                 Neyveli Lignite Corporation        AAA           2730.25           1.44
                                                 Citicorp Finance                      AAA             3156.90       1.66
                                                                                                                                 Indian Railway Finance
                                                 Ashok Leyland                          AA-            2122.30       1.12
                                                                                                                                 Corporation (GECSI) - PTC       AAA (SO)         1533.74           0.81
                                                 Ashok Leyland Finance                  P1+            2077.00       1.09
                                                                                                                                 BPCL                               AAA           1281.96           0.68
     Investment Style                            Loan Securitisation Trust -
                                                 Reliance Industries (PTC)          AAA (SO)           2035.13       1.07        Indian Oil Corporation             LAAA          1064.70           0.56
     The Fund Manager strives to earn
     steady returns in the fixed income          Tata Power                            AA+             1841.79       0.97        Indian Oil Corporation - PTC AAA (SO)            1045.01           0.55
     market by actively managing the
                                                 Associates India                                                                Canara Bank                        LAAA            520.14          0.27
     funds portfolio on interest rate
     movements and credit risks                  Financial Services                    AAA             1575.20       0.83
                                                                                                                                 Total PSU/PFI Bonds                             39089.70         20.59
                                                 Cholamandalam Investments
     Investment Objective
                                                 & Finance Company                    MAAA             1571.85       0.83        GOI 07.40% 2012 *                  SOV          24229.80          12.76
     Seeks to generate a steady stream of
     income through investment in fixed          Panatone Finvest                   AAA (SO)           1511.28       0.79
                                                                                                                                 GOI 09.39% 2011 *                  SOV          16038.95           8.45
     income securities                           HDFC                                  AAA             1116.90       0.59
                                                                                                                                 GOI 09.85% 2015 *                  SOV          13074.65           6.88
     Date of Allotment                           ICICI Bank                            LAAA            1113.80       0.59
                                                                                                                                 GOI 11.30% 2010 *                  SOV          11452.05           6.03
     March 5, 1997                               Citicorp Maruti Finance               AAA             1055.80       0.56
                                                                                                                                 GOI 06.85% 2012 *                  SOV          10314.68           5.43
                                                 Rabo India Finance                    AAA             1041.10       0.55
     Fund Manager
                                                 IIDL                                AA (SO)              998.69     0.53        GOI 07.55% 2010 *                  SOV           9226.24           4.86
     Nilesh Shah
                                                 Citibank NA                           AAA                652.53     0.34        GOI 07.38% 2015 *                  SOV           7647.25           4.03
     Latest NAV
     Growth Plan        Rs. 23.3936              PFSL PTC - HDFC (MBS)              AAA (SO)              190.52     0.10        GOI 06.96% 2009                    SOV           3799.60           2.00

     Dividend Plan      Rs. 11.3836              Total Corporate Debt                                41392.59       21.80        GOI 06.00% UTI
                                                                                                                                 Special Bonds 2010                 SOV           1039.20           0.55
     Fund Size                                   IDBI *                                AA+             7273.80       3.83
     Rs. 1898.70 crores                          Power Finance Corporation*            AAA             6598.23       3.47        Total Gilts                                     96822.41         50.99

     Maturity & Yield                            IDFC                                  AAA             4100.40       2.16        Call, Cash & Other Assets                       12564.95           6.62
                                                 NTPC                                  AAA             3434.40       1.81        Net Assets                                    189869.65         100.00
                   Avg Maturity     YTM
      Bond            3.08 years   5.81%                                                                                        # Including erstwhile Indo Gulf Corporation’s debenture      * Top 10 holdings
      Fund            5.63 years   5.34%*
                                               Portfolio Composition and Performance
                         * Pre fund expenses

     Modified Duration                           Fu nd M an a g e r ’ s C o m m e n ta r y                                       Composition by Assets
     4.26 years
                                                     The maturity period of the scheme reduced to 5.63
     Expense Ratio                               N AV Per f o r m a n c during the month. As a result, the
                                                 years from 5.73 years e
     1.54%                                       modified duration of the scheme also reduced to 4.26
                                                 years.
     Minimum Investment/
     Multiples for New Investors
     Rs.10000/1000
                                                 N AV Per f o r m a n c e
     Additional Investment/                                         Last          Last          Last     Last      Since           s    Corporate Debt                         21.80%
     Multiples for Existing Investors                                                                                              s    Gilts                                  50.99%
                                                                  3 months       1 year       3 years* 5 years* inception*
     Rs.1000/1000                                                                                                                  s    PSU/PFI Bonds                          20.59%
                                                TIIF(G)             1.13%        9.72%        13.88%       13.25%   13.42%         s    Call, Cash & Other Assets               6.62%
     Load Structure                             TIIF (D)         1.10%           9.70%        14.10%       13.16%   13.64%
     Entry Load NIL                             Crisil Composite
     Exit Load     Rs.10 lakhs &                Bond Fund Index 0.84%            8.66%         N.A          N.A       N.A
                   below - 0.5%,               *Compounded and annualised         Dividends declared assumed to be reinvested
                   if redeemed within           Past performance may or may not be sustained in future.
                   6 months of allotment                                                                                         NAV M o v e m e n t ( s i n c e i nc e pt ion)
                   Above Rs.10 lakhs -
                   0.25%, if redeemed            Composition by Rating
                   within 3 months of
                   allotment




                                                        s AAA/P1+/PR1+/A1+/SOV                         93.56%
                                                        s AA/AA+/AA-                                    6.44%


22
      Templeton India Income Builder Account                                                                                                                            TIIBA
                                                    Portfolio
As of November 28, 2003
                                                     Company Name                      Rating      Market Value        % of     Company Name                     Rating   Market Value      % of
                                                                                                    Rs. Lakhs         Assets                                               Rs. Lakhs       Assets
              Fund Category
                                                     Reliance Industries *               AAA         13533.97          6.07     GOI 09.39% 2011 *                 SOV          21954.69      9.85
                                                     HDFC                                AAA            6226.20        2.79
                                                                                                                                GOI 07.40% 2012 *                 SOV          18806.94      8.44
                                                     Hindalco Industries #               AAA            4776.79        2.14
                                                     Loan Securitisation Trust -                                                GOI 09.85% 2015 *                 SOV          13352.64      5.99
                                                     Bajaj Auto (PTC)                 AAA (SO)          3520.05        1.58
                                                                                                                                GOI 07.38% 2015 *                 SOV          12941.50      5.81
                                                     LIC Housing Finance                 AAA            3030.80        1.36
                                                     ICICI Bank                          AAA            2498.89        1.12     GOI 06.85% 2012 *                 SOV          12935.16      5.80

Investment Style                                     ING Vysya Bank                      AA+            1461.89        0.66
                                                                                                                                GOI 07.46% 2017 *                 SOV          11823.83      5.30
The fund manager strives to deliver                  PFSL - Tata Motors PTC           AAA (SO)           892.14        0.40
superior risk-adjusted returns by
                                                     Bharti Mobile                    AA+ (SO)          1182.20        0.53     GOI 08.07% 2017 *                 SOV          10495.13      4.71
actively managing a portfolio of high
quality fixed income securities.                     Hongkong Bank                       N.R            1178.91        0.53
                                                                                                                                GOI 07.49% 2017                   SOV           8197.00      3.68
Investment objective                                 PFSL - Citibank PTC              AAA (SO)           410.31        0.18
Seeks to provide regular returns to                  Canara Bank                        LAAA            1040.29        0.47     GOI 11.30% 2010                   SOV           3098.79      1.39
investors primarily through investments
in quality fixed income instruments                  Citicorp Maruti Finance             AAA            1025.65        0.46
                                                                                                                                GOI 07.27% 2013                   SOV           2903.75      1.30
Date of Allotment                                    The Lakshmi Vilas Bank              N.R             432.42        0.19
June 23, 1997                                        Total Corporate Debt                            41210.51         18.48     GOI 06.35% 2020                   SOV           2611.25      1.17

Fund Manager                                         IDBI *                              AA+            9660.35        4.33     GOI 06.00% UTI
Rahul Goswami
                                                     Neyveli Lignite Corporation*        AAA            8627.59        3.87     Special Bonds 2010                SOV           2598.00      1.17
Latest NAV
                                                     Power Finance Corporation           AAA            6459.88        2.90
Growth Plan                 Rs. 23.0378                                                                                         GOI 07.55% 2010                   SOV           2278.00      1.02
Dividend Plan               Rs. 11.6613              Indian Railways
Monthly Plan                Rs. 15.1237              Financial Corporation               AAA            5790.93        2.60     GOI 06.05% 2019                   SOV           1536.00      0.69
Quarterly Plan              Rs. 15.0113
Half-yearly Plan            Rs. 15.0241              Power Grid Corporation              AAA            3422.42        1.54
Bonus                       Rs. 20.0990                                                                                         GOI 12.25% 2008                   SOV            654.50      0.29
                                                     IDFC                                AAA            2699.25        1.21
Fund Size           Rs. 2229.33 crores               EXIM Bank                           AAA            2546.50        1.14
                                                                                                                                Total Gilts                                126187.18        56.61
Maturity & Yield                                     HUDCO                               AA-            2032.96        0.91
                  Avg Maturity        YTM            NABARD                              AAA             998.10        0.45     Call,Cash & Other Assets                       13297.29      5.96
  Bond              4.16 years    5.91%
                                                     Total PSU/PFI Bonds                             42237.98         18.95     Net Assets                                 222932.96       100.00
  Fund              7.51 years 5.38%*
                       * Pre fund expenses          # Including erstwhile Indo Gulf Corporation’s debentures                   * Top 10 holdings                                     N.R. Non Rated
Modified Duration
5.27 years                                          Portfolio Composition and Performance
Expense Ratio
                                                      Fu nd M an a g e r ’ s C o m m e n ta r y                                  Composition by Assets
1.62%
                                                          The maturity period of the scheme reduced to 7.51
Minimum Investment/Multiples for
New Investors                                         years from 7.63 years during the month. As a result, the
                                                      N AV Per f o r m a n c e
Plan A Rs.40,000/1000 (MD & QD)                       modified duration of the scheme also reduced to 5.27
       Rs.20,000/1000                                 years. We added debentures of NABARD and GOI
       (HD, AD, BP & GP)
Plan B Rs.25,000/1000 (MD & QD)                       7.27% 2013 to the portfolio.
       Rs.10,000/1000
       (HD, AD, BP & GP)
Additional Investment/Multiples for                   N AV Per f o r m a n c e
Existing Investors
Rs. 1000/1000 (for all plans)                                             Last    Last    Last     Last      Since                           s     Corporate Debt                 18.48%
                                                                        3 months 1 year 3 years* 5 years* inception*                         s     PSU/PFI Bonds                  18.95%
Load Structure
                                                     TIIBA (G)            1.02%      10.25% 15.02% 13.53% 13.85%                             s     Gilts                          56.61%
Entry Load Plan A & Plan B: NIL
                                                                                                                                             s     Call, Cash & Other Assets       5.96%
Exit Load                                            TIIBA (D)            1.02%      10.25% 15.03% 13.49% 13.82%
  Plan A   Plan B
  NIL      Rs.10 lakhs &
                                                     Crisil Composite
           below - 0.5%, if redeemed                 Bond Fund Index      0.84%       8.66%       N.A          N.A      N.A
           within 6 months of allotment             *Compounded and annualised Dividends declared assumed to be reinvested
                                                                                                                                 NAV M o v e m e n t ( s i n c e i nc e pt ion)
           Above Rs.10 lakhs - 0.25%,                Past performance may or may not be sustained in future.
           if redeemed within 3 months
           of allotment                               Composition by Rating
MD- Monthly Dividend Plan, QD- Quarterly Dividend
Plan, HD- Half-yearly Dividend Plan, AD- Annual
Dividend Plan, BP- Bonus Plan, GP- Growth Plan.




                                                       s AAA/P1+/SOV 92.85%                 s AA/AA+/AA-             6.43%
                                                       s N.R.        0.72%


                                                                                                                                                                                                      23
         Templeton India Income Builder Account - Institutional Plan                                                                             TIIBA
                                              Portfolio
     As of November 28, 2003
                                                Company Name                                Rating         Market Value (Rs. Lakhs)                       % of Assets
                  Fund Category
                                              Tata Power Company *                           AA+                         2921.46                                  3.19
                                              Reliance Industries *                          AAA                         2119.09                                  2.32
                                              ACC                                            LAA                          548.15                                  0.60
                                              BHPC - Tata Motors PTC                       AAA (SO)                       496.33                                  0.54
                                              BSES                                           AAA                          493.90                                  0.54

                                              Total Corporate Debt                                                       6578.93                                  7.19

                                              IDBI *                                         AA+                         3111.00                                  3.40
     Investment Style
                                              Neyveli Lignite Corporation                    AAA                         1638.15                                  1.79
     The fund manager strives to deliver
     superior risk-adjusted returns by        BPCL                                           AAA                         1100.79                                  1.20
     actively managing a portfolio of high
     quality fixed income securities.         Total PSU/PFI Bonds                                                        5849.94                                  6.39

                                              GOI 08.07% 2017 *                              SOV                        21849.50                                23.88
     Investment objective
                                              GOI 07.38% 2015 *                              SOV                        15882.75                                17.36
     Seeks to provide regular returns to
     investors     primarily     through      GOI 06.85% 2012 *                              SOV                         8987.71                                  9.82
     investments in quality fixed income      GOI 09.39% 2011 *                              SOV                         7339.32                                  8.02
     instruments
                                              GOI 07.40% 2012 *                              SOV                         3980.61                                  4.35
     Date of Allotment                        GOI 07.46% 2017 *                              SOV                         3294.20                                  3.60
     September 23, 2002                       GOI 06.35% 2020 *                              SOV                         2036.78                                  2.23
                                              GOI 07.55% 2010                                SOV                         1822.40                                  1.99
     Fund Manager
                                              GOI 09.85% 2015                                SOV                         1390.90                                  1.52
     Rahul Goswami
                                              GOI 09.40% 2012                                SOV                         1293.50                                  1.41
     Latest NAV
                                              GOI 6.20% UTI Special Bonds 2010               SOV                         1052.20                                  1.15
     Growth Plan           Rs. 11.6951
                                              GOI 11.30% 2010                                SOV                          336.82                                  0.37
     Dividend Plan         Rs. 10.8171
                                              Total Gilts                                                               69266.69                                75.70
     Fund Size
                                              Call, Cash & Other Assets                                                  9795.33                                10.72
     Rs. 914.91 crores
                                              Net Assets                                                                91490.89                            100.00

     Maturity & Yield                                                                                                                                             * Top 10 holdings

                    Avg Maturity    YTM
                                              Portfolio Composition and Performance
      Bond            2.44 years   5.88%
      Fund            8.83 years   5.20%*
                        * Pre fund expenses
                                               Fu nd M an a g e r ’ s C o m m e n ta r y                NAV Pe r f o r m a n c e
     Modified duration                                                                                                            Last           Last            Last       Since
                                                       The maturity period of the scheme reduced
                                                                                                                                3 months       6 months         1 year   inception*
     6.05 years                                marginally to 8.83 years during the month. The gilt
                                                                                                       TIIBA - I Plan             1.09%         4.82%       11.68%        16.95%
                                               N AV Per f o r m a n c e
     Expense Ratio                             exposure of the scheme has increased to 75.70% as we    Crisil Composite
                                               added GOI 9.85% 2015, GOI 9.40% 2012 and GOI            Bond Fund Index            0.84%         3.26%           8.66%     12.43%
     1.00%
                                               11.30% 2010.                                           *Compounded and annualised
     Minimum Investment/Multiples for                                                                 Past performance may or may not be sustained in future.
     New Investors
     Rs. 1 crore/1000

     Additional Investment/Multiples for
     Existing Investors                        Composition by Rating                                    Ageing Analysis
     Rs. 25 lakhs/1000

     Load Structure
     Entry Load                    NIL
     Exit Load                     NIL




                                                                                                        s > 8 years         65.26%             s < 6 months       10.71%
                                                s AAA/P1+/SOV 92.81%          s AA/AA+/AA- 7.19%        s 3 years - 8 years 17.86%               6 months - 1 year 0.00%
                                                                                                        s 1 year - 3 years        6.17%




24
    Templeton Monthly Income Plan
    A n      O p e n - e n d      s c h e m e    w i t h        n o       a s s u r e d            r e t u r n s                                              TMIP
                                                Portfolio - Monthly & Quarterly Dividend Plan                                                             Pure Debt Portfolio
As of November 28, 2003
                                                   Company Name                                                     Rating        Market Value (Rs. Lakhs)         % of Assets
             Fund Category
                                                 ICICI Bank *                                                          AAA                 763.29                     6.88

                                                 Reliance Industries *                                                 AAA                 761.37                     6.87

                                                 Basf India *                                                          AAA                 518.10                     4.67

                                                 Tata Chemicals *                                                       AA                 509.15                     4.59

                                                 Panatone Finvest                                                    AAA (SO)              503.76                     4.54

                                                 Oscar Investments                                                   LAA (SO)              503.10                     4.54
Investment Style                                 Citicorp Finance Fleet Trust - PTC                                  AAA (SO)              496.89                     4.48
The fund manager maintains a pure
debt portfolio and strives to earn               Loan Receivable Trust - IPCL                                        AA (SO)               295.36                     2.66
steady returns in the fixed income               JUS Trust PTC - Jet Airways                                         AAA (SO)              246.40                     2.22
market by actively managing the
funds portfolio on interest rate                 ACC                                                                   LAA                 100.38                     0.91
movements and credit risks
                                                 Total Corporate Debt                                                                     4697.80                    42.36
Investment Objective
                                                 Nuclear Power Corporation *                                           AAA                 557.50                     5.03
Seeks to earn regular income through
investment in fixed income securities            Indian Oil Corporation – PTC *                                      AAA (SO)              522.40                     4.71

Date of Allotment                                IDBI *                                                                AA+                 520.35                     4.69
February 7, 2000                                 SBI                                                                   AAA                 122.97                     1.11
Fund Manager                                     Power Grid Corporation                                                AAA                  58.67                     0.53
Deepesh Pandey & Rahul Goswami                   Total PSU/PFI Bonds                                                                      1781.89                    16.07
Latest NAV                                       GOI 09.39% 2011 *                                                     SOV                 949.05                     8.56
Monthly Plan        Rs. 10.3776
Quarterly Plan      Rs. 10.3233                  GOI 11.30% 2010 *                                                     SOV                 673.65                     6.07

                                                 GOI 06.96% 2009 *                                                     SOV                 542.80                     4.90
Fund Size
Rs. 110.90 crores                                Total Gilts                                                                              2165.50                    19.53

Maturity & Yield                                 Call, Cash and Other Assets                                                              2444.38                    22.04

               Average     Yield to              Net Assets                                                                              11089.58                   100.00
               Maturity    Maturity
                                                                                                                                                                       * Top 10 holdings
Bond          2.15 years     6.12%
Fund          2.57 years 5.43%*                 Portfolio Composition and Performance
                  * Pre-fund expenses

Modified Duration                                 Fu nd M an a g e r ’ s C o m m e n ta r y                                      Composition by Assets
2.02 years                                             The maturity period of the fund decreased to 2.57
                                                  years from 2.65 years during the month. The cash
Expense Ratio
                                                  component of the portfolio continued to be high on
1.90%
                                                  account of inflows. The main additions were debentures
Minimum Investment/Multiples for                  of ICICI Bank and GOI 11.30% 2010.
New Investors
Rs.25000/1000                                     N AV Per f o r m a n c e
Additional Investment/Multiples for                                              Last          Last          Last      Since
Existing Investors                                                                                                                   s Corporate Debt                42.36%
                                                                               3 months       1 year       3 years* inception*
                                                                                                                                     s Gilts                         19.53%
Rs.5000/1000
                                                 TMIP - Monthly                 0.90%         6.55%        10.33%     9.97%          s PSU/PFI Bonds                 16.07%
Load Structure                                   TMIP - Quarterly               0.90%         6.54%        10.45%    10.02%          s Call, Cash & Other Assets     22.04%
Entry Load NIL                                   Crisil MIP Blended Index 3.49%              14.74%          N.A       N.A
CDSC          Rs.10 lakhs &
                                                *Compounded and annualised         Dividends declared assumed to be reinvested
              below - 0.5%,                      Past performance may or may not be sustained in future.
              if redeemed within                                                                                                 Composition by Rating
              6 months of allotment               N AV M o v e m e n t ( s i n c e i n c e p ti o n )
              Above Rs.10 lakhs -
                                                                 Quarterly Dividend Plan
              0.25%, if redeemed
              within 3 months of
              allotment




                                                                                                                                     s AAA/P1+/PR1+/A1+/SOV         82.61%
                                                                                                                                     s AA/AA+/AA-                   17.39%
                                                       Dividends assumed reinvested at ex-dividend NAV



                                                                                                                                                                                           25
         Templeton Monthly Income Plan
         A n      O p e n - e n d        s c h e m e    w i t h        n o       a s s u r e d            r e t u r n s                                                              TMIP
                                                       Portfolio - Half-Yearly Dividend & Growth Plan                                                            Marginal Equity Allocation
     As of November 28, 2003
                                                        Company Name                                     Market Value       % of         Company Name                      Rating     Market Value        % of
                                                                                                          Rs. Lakhs        Assets                                                      Rs. Lakhs         Assets
                  Fund Category
                                                        Equity holdings                                                                  Debt holdings
                                                        Digital Global                                        311.93         1.51        Citicorp Finance
                                                                                                                                         Fleet Trust – PTC *              AAA (SO)        1461.11          7.06
                                                        Hindalco Industries                                   233.48         1.13
                                                                                                                                         Hindalco Industries # *             AAA          1037.65          5.01
                                                        Britannia Industries                                  203.92         0.98        Reliance Industries *               AAA           872.15          4.21
                                                        SBI                                                   188.77         0.91        Indian Rayon *                      AAA           556.49          2.69
                                                                                                                                         SBI Capital Markets *              LAAA           539.45          2.61
                                                        Satyam Computer                                       182.19         0.88
                                                                                                                                         Ashok Leyland                       AA-           517.90          2.50
                                                        Maruti Udyog                                          177.25         0.85        Tata Chemicals                      AA            509.15          2.46
     Investment Stzyle
                                                        Bharat Electronics                                    163.76         0.79        Panatone Finvest                 AAA (SO)         503.76          2.43
     The fund managers strive to earn
     steady returns in the fixed income                                                                                                  Oscar Investments                LAA(SO)          503.10          2.43
                                                        L&T                                                   156.70         0.76
     market by actively managing the                                                                                                     Loan Receivable Trust - IPCL      AA(SO)          393.81          1.90
     funds portfolio on interest rate                   Cipla                                                 150.37         0.73
                                                                                                                                         PFSL PTC - Citibank              AAA (SO)         258.54          1.25
     movements and credit risks, and
     seeks to enhance overall portfolio                 GAIL                                                  140.40         0.68        JUS Trust PTC - Jet Airways      AAA (SO)         246.40          1.19
     returns with a marginal eqnity                     Thermax                                               129.02         0.62        HDFC                                AAA           100.20          0.48
     allocation                                                                                                                          Tata Motors - PTC                AAA (SO)         40.23          0.19
                                                        Grasim Industries                                     123.68         0.60
     Investment Objective                                                                                                                Total Corporate Debt                            7539.94         36.41
                                                        HPCL                                                  121.09         0.58        IDBI *                              AA+         1668.86          8.06
     Seeks to earn regular income through
     investment in fixed income securities              Mphasis BFL                                           115.15         0.56        Nuclear Power Corporation*          AAA         1115.00           5.39
                                                                                                                                         SBI *                               AAA           528.77          2.55
     Date of Allotment                                  Sun Pharma                                            111.64         0.54
                                                                                                                                         Indian Oil Corporation - PTC AAA (SO)             522.03          2.52
     February 7, 2000                                   GSK Consumer Healthcare                               111.03         0.54        Power Grid Corporation              AAA           146.69          0.71

     Fund Manager                                       BPCL                                                  106.37         0.51        NALCO                               AAA           53.69          0.26
                                                                                                                                         Total PSU/PFI Bonds                             4035.02         19.49
     Deepesh Pandey & Rahul Goswami                     ITC                                                   102.53         0.49
                                                                                                                                         GOI 09.39% 2011 *                   SOV         1898.10          9.17
     Latest NAV                                         Punjab Tractors                                           92.46      0.45        GOI 11.30% 2010 *                   SOV         1347.30           6.51
     Growth Plan      Rs. 15.2177                       BHEL                                                      78.42      0.38        GOI 07.55% 2010                     SOV           341.70          1.65
     Half-Yearly Plan Rs. 11.3680                                                                                                        GOI 06.85% 2012                     SOV          100.36          0.48
                                                        HDFC Bank                                                 75.61      0.36
     Fund Size                                                                                                                           Total Gilts                                     3687.46         17.81
                                                        Concor                                                    45.72      0.22        Call, Cash and Other Assets                     2323.98         11.22
     Rs. 207.08 crores
                                                        Total equity holdings                               3121.50        15.07         Net Assets                                     20707.90        100.00
     Maturity & Yield**
                                                                                                                                        # Including erstwhile Indo Gulf Corporation’s debentures    * Top 10 holdings
                  Avg Maturity      YTM
                                                       Portfolio Composition and Performance
      Bond         1.94 years    5.87%
      Fund         2.78 years    5.53%*
                       * Pre-fund expenses               Fu nd M an a g e r ’ s C o m m e n ta r y                                        Composition by Assets
     Modified Duration**                                      The equity allocation to the portfolio has increased
     2.21 years                                          to 15.07% while that to gilts has decreased to 17.81%.
                                                         N AV equity side, we
                                                         On thePe r f o r m a n c e added Thermax, Mphasis BFL
               ** based on debt portfolios only
                                                         and HDFC Bank. On the debt side, we added the pass
     Expense Ratio                                       through certificate of IOC, debentures of Indian Rayon
     1.90%                                               and GOI 11.30% 2010.
     Minimum Investment/Multiples for                    N AV Per f o r m a n c e
     New Investors
                                                                                         Last          Last    Last      Since                   s Corporate Debt                            36.41%
     Rs.10000/1000
                                                                                       3 months       1 year 3 years* inception*                 s Equity                                    15.07%
     Additional Investment/Multiples for
                                                        TMIP - Growth                    3.49%        16.17% 12.69% 11.66%                       s Gilts                                     17.81%
     Existing Investors
                                                        TMIP - Halfyearly                3.49%        16.12% 12.69% 11.51%                       s PSU/PFI Bonds                             19.49%
     Rs.1000/1000
                                                        Crisil MIP Blended Index         3.49%        14.74%        N.A      N.A                 s Call, Cash & Other Assets                 11.22%
     Load Structure
                                                       *Compounded and annualised         Dividends declared assumed to be reinvested
     Entry Load      NIL
                                                        Past performance may or may not be sustained in future.
     CDSC            Rs.10 lakhs &                                                                                                        Composition by Rating - Debt Portfolio
                     below - 0.5%,                       N AV M o v e m e n t ( s i n c e i n c e p ti o n )
                     if redeemed within
                     6 months of allotment                           Growth Plan
                     Above Rs.10 laksh -
                     0.25%, if redeemed
                     within 3 months of
                     allotment




                                                                                                                                                 s AAA/P1+/PR1+/A1+/SOV                      79.57%
                                                                                                                                                 s AA/AA+/AA-                                20.43%




26
      FT India Monthly Income Plan
      A n       O p e n - e n d             s c h e m e       w i t h        n o       a s s u r e d        r e t u r n s                                                FTIMIP
                                                          Portfolio
As of November 28, 2003
                                                              Company Name                       No. of     Market Value     % of       Company Name                       Rating      Market Value         % of
                                                                                                 Shares      Rs. Lakhs      Assets                                                      Rs. Lakhs          Assets
              Fund Category
                                                              Equity holdings                                                           IPCL                                 AA              443.78           0.66
                                                              SBI                                213100       1003.17        1.49       GE Capital Transportation
                                                              Digital Global                     142684        937.01        1.39       Financial Services - PTC         AAA (SO)           1151.96           1.71
                                                              Hindalco                           63025         781.79        1.16       Reliance Industries                AAA              1068.39           1.58
                                                              Britannia                          140340        744.29        1.10       PFSL - Cholamandalam PTC         MAAA (SO)          1036.63           1.54
                                                              Satyam Computer                    220804        728.76        1.08       ICICI Bank                         AAA               990.61           1.47
                                                              Maruti Udyog                       177650        612.63        0.91       Mumbai Auto
                                                              HDFC Bank                          200000        604.90        0.90       Receivables Trust - PTC             AAA            946.75            1.40
                                                              L&T                                150500        604.71        0.90       HDFC                                AAA            558.45            0.83
                                                              Mphasis BFL                         94973        546.81        0.81       Ashok Leyland                       AA-            537.15            0.80
                                                              ITC                                 62000        529.76        0.79       Ford India                        AA- (SO)         510.00            0.76
Investment Style                                              MICO                                4256         507.46        0.75       GE Shipping                         AAA            228.12            0.34
                                                              Smithkline Consumer                162064        503.21        0.75       Sterlite                            AA-            104.30            0.15
The fund manager strives to earn regular                      Cipla                               38677        464.65        0.69       Hongkong Bank                       N.R             65.50            0.10
income (with no assured returns) in the fixed                 Bharat Electronics                  83624        441.74        0.65       Max India                            BB             62.75            0.09
income market by actively managing the funds                  BPCL                               118000        422.62        0.63       ACC                                  AA             40.15            0.06
portfolio on interest rate movements and                      Thermax                            124214        400.65        0.59       GE Capital Services               AAA (SO)          13.47            0.02
credit risks, while seeking to enhance the                    GAIL                               216000        379.08        0.56       PFSL PTC - Orix                   AAA (SO)           4.11            0.01
returns with a marginal equity allocation.                    Siemens                             39370        279.76        0.41       Total Corporate Debt                             20611.45           30.56
                                                              Sun Pharma                          39211        236.34        0.35
Investment objective                                                                                                                    IDBI *                               AA+          5109.70            7.57
                                                              HPCL                                62053        227.70        0.34
                                                                                                                                        Power Finance Corporation *          AAA          3080.82            4.57
Seeks to provide regular income through a                     Asian Paints                        59336        183.05        0.27
                                                                                                                                        Indian Oil Corporation - PTC         AAA          1276.98            1.89
portfolio of predominantly high quality fixed                 Grasim                              19500        175.40        0.26
                                                                                                                                        Neyveli Lignite Corporation          AAA          1092.10            1.62
income securities with a maximum exposure                     Wockhardt                           26881        169.63        0.25
                                                                                                                                        Indian Railways
                                                              Maharashtra Seamless                40449         81.22        0.12
of 20% to equities.                                                                                                                     Financial Corporation                AAA           543.25            0.81
                                                              GE Shipping                         34596         47.95        0.07
                                                              HCL Tech.                            6638         17.89        0.03       Power Grid Corporation               AAA           342.27            0.51
Date of Allotment                                                                                                                       Total PSU/PFI Bonds                              11445.12           16.97
                                                              Total equity holdings                          11632.18       17.25
September 28, 2000                                                                                                                      GOI 06.96% 2009 *                    SOV          3799.60            5.63
                                                              Debt holdings                      Rating      Market Value    % of       GOI 11.30% 2010 *                    SOV          2627.24            3.89
Fund Manager                                                                                                  Rs. Lakhs     Assets      GOI 06.20% UTI
Deepesh Pandey & Rahul Goswami                                Citicorp Finance                                                          Special Bonds 2010 *                 SOV            2104.40           3.12
                                                              Fleet Trust - PTC (Series A3) *    AAA (SO)     3800.70         5.63      GOI 07.40% 2012 *                    SOV            2019.15           2.99
Latest NAV                                                    Citicorp Finance                                                          GOI 07.38% 2015                      SOV            1764.75           2.62
                                                              Fleet Trust - PTC (Series A1) *    AAA (SO)     1937.64         2.87      GOI 09.39% 2011                      SOV            1739.93           2.58
Growth Plan               Rs. 15.1541
                                                              Panatone Finvest                   AAA (SO)     1511.25         2.24      GOI 06.00%
Monthly Plan              Rs. 11.5527
                                                              Citicorp Maruti Finance              P1+        1499.55         2.22      UTI Special Bonds 2010               SOV          1039.20            1.54
Quarterly Plan            Rs. 11.6693                         JUS Trust Jet Airways - PTC        AAA (SO)     1478.40         2.19      Total Gilts                                      15094.27           22.37
Bonus                     Rs. 13.4703                         M&M Financial Services - PTC       AAA (SO)     1322.03         1.96      91 Days Treasury Bills *             SOV          4987.66            7.39
                                                              Loan Receivable Trust - IPCL PTC     AA          801.34         1.19      Money Market Instruments                          4987.66            7.39
Fund Size                Rs. 674.78 crores
                                                              Citicorp Finance                                                          Call, Cash & Other Assets                         3706.93            5.46
Modified Duration#                                            Fleet Trust - PTC (Series A2)      AAA (SO)      498.42         0.74      Net Assets                                       67477.61          100.00

2.74 years          # based on debt portfolios only                                                                                    * Top 10 holdings

Expense Ratio            2.05%
                                                          Portfolio Composition and Performance
Minimum Investment/Multiples for New
Investors
Plan A       Rs.40,000/1000 (MD&QD)                            Fu nd M an a g e r ’ s C o m m e n ta r y                                 NAV Pe r f o r m a n c e
             Rs.20,000/1000 (BP & GP)
Plan B       Rs.25,000/1000 (MD & QD)                                                                                                                                 Last          Last        Last      Since
                                                                    The equity allocation to the portfolio has increased
             Rs.10,000/1000 (BP & GP)                                                                                                                               3 months       1 year     3 years* inception*
                                                               to 17.25% from 16.07% while that to gilts has
Additional Investment/Multiples for Existing                   increased to o r m a n c e maturity period of the scheme
Investors                                                      N AV Per f 22.37%. The                                                   FTIMIP                       3.98%         16.42%      14.25%      14.03%
                                                               decreased to 3.60 years. On the equity side, the main                    Crisil MIP Blended Index 3.49%             14.74%        N.A         N.A
Rs. 1000/1000 (for all plans)                                  additions were Thermax and HDFC Bank. On the debt
Load Structure                                                 side, debentures like Fleet Trust, Citicorp Maruti Finance,             *Compounded and annualised
                                                                                                                                       Please note that past performance is not an indicator of future performance
Entry Load                                                     IRFC and UTI Special Bonds.
Plan A               Plan B*
  NIL                Rs.10 lakhs above - 0.5%,                 N AV M o v e m e n t ( s i n c e i n c e p ti o n )
                     Upto Rs.10 lakhs - NIL
Exit Load
  Plan A             Plan B
  NIL                Rs.10 lakhs &                                                                                                       Composition by Rating - Debt Portfolio
                     below - 0.5%,
                     if redeemed within
                     6 months of allotment
                     Above Rs.10 lakhs - NIL*
                     * w.e.f. December 1, 2003
MD- Monthly Dividend Plan, QD- Quarterly Dividend
Plan, BP- Bonus Plan, GP- Growth Plan.




                                                                            Average maturity#                Yield to maturity#
                                                                                                                                                 s AAA/P1+/SOV                               86.25%
                                                               Bond                 2.50 years                      6.05%                        s AA/AA+/AA-                                13.52%

                                                               Fund                 3.60 years                      5.54%*                       s N.R.                                       0.12%
                                                                                                                                                 s BB                                         0.11%
                                                          #   based on debt portfolios only                      * Pre fund expenses

                                                                                                                                                                                                                     27
         Templeton India Government Securities Fund                                                                                                            TGSF
                                             Portfolio - TGSF
     As of November 28, 2003
                                                      Company Name                                        Rating                Market Value (Rs.Lakhs)              % of Assets
                 Fund Category
                                               GOI 07.46% 2017                                              SOV                         29706.63                        35.98

                                               GOI 06.35% 2020                                              SOV                          9713.85                        11.76

                                               GOI 07.49% 2017                                              SOV                          9368.00                        11.35

                                               GOI 06.05% 2019                                              SOV                          8192.00                          9.92

                                               GOI 06.25% 2018                                              SOV                          5783.25                          7.00

                                               GOI 07.38% 2015                                              SOV                          4706.00                          5.70
     Investment Style
                                               GOI 08.07% 2017                                              SOV                          1718.50                          2.08
     The Fund Managers strive to enhance
     portfolio returns by actively             GOI 10.95% 2011                                              SOV                          1354.00                          1.64
     managing the portfolio duration and
     market volatility                         GOI 07.27% 2013                                              SOV                           580.75                          0.70
     Investment Objective                      Total Gilts                                                                              71122.98                        86.13
     Seeks to generate credit risk-free
     return through investments in             Call, Cash & Other Assets                                                                11448.79                        13.87
     sovereign secutiries                      Net Assets                                                                               82571.76                       100.00
     Date of Allotment
     TGSF      June 21, 1999
                                             Portfolio - TGSF (Treasury Plan)
     TGSF (TP) February 11, 2002
     Fund Manager:        Sameer Kulkarni
                                                      Company Name                                        Rating                Market Value (Rs.Lakhs)             % of Assets
     Latest NAV
     TGSF                                      GOI 09.39% 2011                                              SOV                           949.05                        56.19
     Growth Plan         Rs. 22.0008
     Dividend Plan       Rs. 11.9203           GOI 11.98% 2004                                              SOV                           264.18                        15.64
     TGSF (TP)
     Growth Plan         Rs. 11.9860           Total Gilts                                                                               1213.23                        71.83
     Dividend Plan       Rs. 10.7531
                                               Call, Cash & Other Assets                                                                  475.89                        28.17
     Fund Size
     TGSF                Rs. 825.72crores      Net Assets                                                                                1689.11                       100.00
     TGSF (TP)           Rs. 16.89 crores
     Modified Duration
     TGSF                7.73 years
                                             Portfolio Composition and Performance
     TGSF-TP             3.22 years
     Expense Ratio
                                               Fu nd M an a g e r ’ s C o m m e n ta r y                                         NAV M o v e m e n t - T G S F ( s inc e inc e pt ion)
     TGSF    1.25%
     TGSF-TP 1.25% (Apr to Nov 2003)
             0.90% (Nov. 24, 2003 onwards)          The maturity period of TGSF has been decreased to
                                               12.03 years and that of the Treasury Plan increased to
     Minimum Investment for New /
                                               4.39 years. We added GOI 6.25% 2018, GOI
     Existing Investors
                                               10.95% 2011 and GOI 7.27% 2013 to TGSF’s
     TGSF             Rs.10,000/1000 (G)
                                               portfolio.
                      Rs.25,000/1000 (D)
     TGSF (TP)        Rs.1 lakh /1000
     Additional Investment/multiples for       N AV Per f o r m a n c e
     Existing Investors
     TGSF      Rs.1000/1000                                                  Last    Last                Last     Since
               (for all plans)                                             3 months 1 year             3 year* inception*
     TGSF (TP) Rs. 1 lakh /1000               TGSF (G)                       0.79%       16.31%         22.40%     19.43%
     Load Structure                           TGSF (D)                       0.77%       16.31%         21.47%     18.73%
                TGSF (TP) TGSF                I-Sec Composite Index          1.42%       12.53%          N.A         N.A
     Entry Load NIL      NIL
                                              TGSF - TP (G)                  1.20%        9.14%          N.A       10.62%
     Exit Load NIL       Rs.10 lakhs &
                         below - 0.5%, if     TGSF - TP (D)                  1.17%        9.26%          N.A       10.68%
                         redemption is        I-Sec Si-BEX                   1.51%        7.61%          N.A         N.A
                                                                                                                                 NAV Movement-TGSF (TP) (since inception)
                         made within
                                             *Compounded and annualised           Dividends declared assumed to be reinvested
                         6 months of
                                             Past performance may or may not be sustained in future.
                         allotment
                         Above
                         Rs.10 lakhs - Nil                             Average maturity                Yield to maturity

                                               TGSF
                                               G-Sec                         13.97 years                       5.66%
                                               Fund                          12.03 years                       5.30%*
                                               TGSF-TP
                                               G-Sec                          6.11 years                     4.98%
                                               Fund                           4.39 years                     4.39%*
                                                                                                         * Pre fund expenses

28
    FT India Gilt Fund                                                                                                                             FTIGF
                                          Portfolio
As of November 28, 2003
                                             Company Name                                                Rating              Market Value (Rs. Lakhs)       % of Assets
           Fund Category
                                              GOI 06.05% 2019                                               SOV                       1536.00                    16.81
                                              GOI 08.07% 2017                                               SOV                       1534.38                    16.79
                                              GOI 07.49% 2017                                               SOV                       1171.00                    12.82
                                              GOI 06.25% 2018                                               SOV                       1051.50                    11.51
                                              GOI 07.46% 2017                                               SOV                       470.60                     5.15
                                              GOI 06.35% 2020                                               SOV                       261.13                     2.86
                                              Total Gilts                                                                             6024.61                    65.94
                                              Call, Cash & Other Assets                                                               3112.91                    34.06
Investment Style
The fund manager strives to enhance           Net Assets                                                                              9137.52                   100.00
portfolio returns by actively
managing the portfolio duration and
market volatility
                                             Company Name                                                         Market Value (Rs. Lakhs)                % of Assets
Investment objective
Seeks to provide steady returns by            364-Day Treasury Bills                                                       272.26                                84.12
investing in securities issued by the
Central/State Government and/or               Money Market Instruments                                                     272.26                                84.12
securities unconditionally guaranteed
by the Central/State Government for           Call, Cash & Other Assets                                                    51.40                                 15.88
repayment of principal and interest.          Net Assets                                                                   323.66                               100.00
Date of Allotment
December 7, 2001

Fund Manager
Sameer Kulkarni

Latest NAV
Investment Plan
Growth Plan           Rs. 14.3366
Quarterly Plan        Rs. 11.7575
Bonus                 Rs. 12.8286
Liquid Plan
Growth Plan           Rs. 11.5918
Monthly Plan          Rs. 10.3190

Fund Size
Investment Plan       Rs.91.38 crores     Portfolio Composition and Performance
Liquid Plan           Rs.3.24 crores

Modified Duration                           Fu nd M an a g e r ’ s C o m m e n ta r y                                      NAV Movement - Investment Plan (since Inception)
Investment Plan       5.97 years
Liquid Plan           0.74 years                 The maturity period of the investment plan
                                            decreased too9.32 years from 12.42 years at the end of
                                            N AV Per f r m a n c e
Expense Ratio
Investment Plan 1.25%
                                            the last month. We added GOI 6.05% 2019 and GOI
Liquid Plan     0.99% (Apr to Nov 2003)     6.25% 2018 to the portfolio. We added 364 day T-bills
                0.90% (Nov. 24, 2003        to the portfolio of Liquid Plan.
                onwards)

Minimum Investment/Multiples for            N AV Per f o r m a n c e
New Investors
                                                                   Last         Last          Last         Since
Investment Plan &
                                                                 3 months     6 months       1 year     inception*
Liquid Plan -
Growth/Bonus       Rs.10,000/1000          Investment Plan        2.32%         7.32%       20.86%       20.01%
Investment Plan -
                                           Liquid Plan            0.87%         2.62%        5.82%       7.76%
Quarterly Dividend
& Liquid Plan -                            I Sec Libex            1.32%         6.48%       16.51%         N.A
Monthly Dividend Rs.25,000/1000
                                          *Compounded and annualised
                                          Past performance may or may not be sustained in future.
Additional Investment/Multiples for
Existing Investors                                                                                                         NAV Movement - Liquid Plan (since Inception)
Rs.1000/1000 (for all plans)                I nv es t m e n t P l a n

Load Structure                                                       Average maturity          Yield to maturity
Entry Load        NIL                       Govt. Securities           14.14 years                    5.69%
Exit Load         NIL                       Investment Plan             9.32 years                    5.22%*


                                            L iq u id P l a n
                                                                     Average maturity          Yield to maturity
                                            Liquid Plan                 0.79 years                    4.27%*

                                                                                               * Pre fund expenses


                                                                                                                                                                              29
         Templeton Floating Rate Income Fund                                                                                                                                TFIF
                                               Portfolio
     As of November 28, 2003
                                               Company Name                             Rating Market Value       % of      Company Name                          Rating    Market Value    % of
                                                                                                Rs. Lakhs        Assets                                                      Rs. Lakhs     Assets
                 Fund Category
                                               Long Term                                                                    Rabo India Finance                      P1+         503.15       0.89
                                               GE Capital Services *                AAA           2000.00        16.33      Kotak Mahindra Bank - PTC             AAA(SO)       441.65       0.78
                                               Reliance Industries *                AAA           1500.00        12.24
                                                                                                                            Citicorp Finance - PTC                AAA(SO)       413.13       0.73
                                               Citicorp Finance – PTC *            AAA(SO)         826.27         6.74
                                                                                                                            Total Corporate Debt                              10153.08      17.93
                                               Tata Motors *                         AA            500.00         4.08
                                                                                                                            IDBI *                                 AA+         2536.20       4.48
                                               Bharti Televentures                 A1+(SO)         401.31         3.28
                                               PFSL PTC -                                                                   BSNL                                   AAA         1017.00       1.79
                                               Ashok Leyland Finance               AAA(SO)         384.34         3.14      Total PSU/PFI Bonds                                3553.20       6.27
                                               PFSL PTC - Citibank NA              AAA(SO)         348.79         2.85      ABN AMRO Securities *                   N.R        2500.00       4.41
     Investment Style                          Cholamandalam Investment                                                     Citicorp Finance
                                               & Finance Corporation - PTC         MAAA(SO)        322.16         2.63      Fleet Trust – PTC *                   AAA(SO)      1915.03       3.38
     The primary objective of the scheme
                                               Total Corporate Debt                               6282.87        51.29
     is to provide income consistent with                                                                                   Kotak Mahindra Bank *                  AAA         1200.00       2.12
     the prudent risk from a portfolio         Indian Railway Finance
                                                                                                                            L&T                                    AA+         1000.00       1.77
     comprising primarily of floating rate     Corporation (GECSI) - PTC *         AAA(SO)         511.25         4.17
     debt instruments                          Total PSU/PFI Bonds                                 511.25         4.17      IDBI                                   AA+         1000.00       1.77
                                               Kotak Mahindra Bank *                 AAA          1300.00        10.61      Kotak Mahindra Primus                  MAA+        1000.00       1.77
     Investment Objective
                                               Citicorp Finance *                    AAA          1200.00         9.80      Sundaram Finance                        P1+        1000.00       1.77
     The fund managers strive to
     minimise the risk arising from            IDBI *                                AA+          1000.00         8.16      TELCO Construction Equipment            A1+        1000.00       1.77
     interest rate fluctuations                Citifinancial Retail Services *      MAAA           500.00         4.08      Kotak Mahindra Primus                   P1+        1000.00       1.77
                                               Citicorp Maruti Finance *             AAA           500.00         4.08
     Date of Allotment                                                                                                      Associates India Financial Services     P1+         500.00       0.87
                                               Total Mibor
     February 11, 2002                         Linked Instruments                                 4500.00        36.73      Citicorp Maruti Finance                AAA          500.00       0.87
                                               Call, Cash and Other Assets                         956.93         7.81      Total Mibor
     Fund Manager
                                                                                                                            Linked Instruments                                12615.03      22.27
                                               Net Assets                                        12251.05       100.00
     Short term : Shobhit Mehrotra                                                                                          HDFC *                                  P1+        3834.53       6.77
     Long term : Rahul Goswami                 Short Term                                                                   ICICI Bank *                            A1+        3443.56       6.08
                                               Associates India
     Latest NAV                                                                                                             GE Capital Services *                   P1+        2377.21       4.20
                                               Financial Services *               P1+             2004.90         3.54
     Short-Term                                                                                                             Associates India Financial Services     P1+         988.59       1.75
                                               Bharti Televentures *            A1+(SO)           1473.34         2.60
     Growth Plan           Rs. 11.2322         HDFC *                             P1+             1022.30         1.80      Citicorp Finance                        P1+         980.98       1.73
     Dividend Plan         Rs. 10.0086         Kotak Mahindra Bank               AAA              1007.10         1.78      IDBI                                    P1+         963.86       1.70
     Long-Term                                 GE Countrywide                     P1+             1001.31         1.77      Total Money
     Growth Plan           Rs. 11.2440         TELCO Construction Equipment       A1+             1000.00         1.77      Market Instruments                                12588.71      22.23
     Dividend Plan         Rs. 10.2231         PFSL PTC - Ashok Leyland Finance AAA(SO)            758.33         1.34      Call, Cash and Other Assets                       17728.77      31.30
     Fund Size                                 MMFSL VE Trust - PTC                AAA(SO)         527.86         0.93      Net Assets                                        56638.79     100.00

     Short-Term         Rs. 566.39 crores                                                               * Top 10 holdings                                                          * Top 10 holdings
     Long-Term          Rs. 122.51 crores
                                               Portfolio Composition and Performance
     Expense Ratio
     Short-Term      1.00%
                                                 Fu nd M an a g e r ’ s C o m m e n ta r y                                   NAV M o v e m e n t - T F I F ( sinc e inc e pt ion)
     Long-Term       1.50% (Apr to Nov 2003)
                     1.25% (Nov. 24, 2003
                     onwards)                         The maturity period for the long-term plan has                                              Short-Term
     Minimum Investment/Multiples for            decreased to 1.26 years and that of the short-term plan
     New Investors
                                                 N AV Per f r m a years
                                                 increased too0.39 n c e during the month. We have
     Short-Term Rs.1 lakh/1000                   increased the corporate bond allocation in the long-term
     Long-Term Rs.10,000/1000                    plan to 51.29%. The fund witnessed substantial inflows
     Additional Investment/Multiples for         in the short-term plan, which were deployed judiciously.
     Existing Investors
     Short-Term Rs.1 lakh/1000                   N AV Per f o r m a n c e
     Long-Term Rs.1000/1000
                                                                          Last    Last     Last    Last     Since
     Load Structure                                                     1 month 3 months 6 months 1 year inception*
              Short-Term Long-Term              Short-Term Plan          0.37%     1.20%      2.67% 5.85%        6.60%
     Entry Load NIL     NIL
     Exit Load NIL      Rs.10 lakhs &           Long-Term Plan           0.36%     1.17%      2.50% 5.84%        6.66%
                        below - 0.5%, if
                                                Crisil Liquid Fund Index 0.35% 1.05%          2.10% 4.71%         N.A
                        redeemed
                        within 6 months        *Compounded and annualised
                        of allotment            Past performance may or may not be sustained in future.                      NAV M o v e m e n t - T F I F ( sinc e inc e pt ion)
                        Above
                        Rs.10 lakhs -                                 Modified Duration Yield to Maturity*
                        0.25%, if                                                                                                              Long-Term
                        redeemed
                        within 3 months         Short-Term Plan             0.38 years                  5.83%
                        of allotment            Long-Term Plan              1.22 years                  6.40%
                                                                                                   *   Pre-fund expenses

                                                 Average Maturity
                                                                                 Bond                    Fund
                                                Short-Term Plan             0.55 years                 0.39 years
                                                Long-Term Plan              1.37 years                 1.26 years


30
    Templeton India Short-Term Income Plan                                                                                                            TISTIP
                                        Portfolio
As of November 28, 2003
                                        Company Name                       Rating     Market Value    % of     Company Name                        Rating       Market Value          % of
                                                                                       Rs. Lakhs     Assets                                                      Rs. Lakhs           Assets
             Fund Category
                                        Reliance Industries *                AAA        9681.08       8.08     IDBI *                                AA+            8816.05            7.36
                                        ICICI Bank *                         AAA        5677.50       4.74     BSNL *                                AAA            2745.90            2.29
                                        M&M Financial Services *             AA         5131.35       4.28     Indian Railways
                                        Bharti Televentures – PTC *        A1+ (SO)     4859.70       4.06     Financial Corporation *               AAA            2719.55            2.27
                                        Hindalco Industries # *              AAA        4382.30       3.66     EXIM Bank                             AAA            2565.04            2.14
                                        Tata Industries                      AA         2530.75       2.11     NTPC                                  AAA            2084.26            1.74
                                        LIC Housing Finance UBL - PTC AAA (SO)          2518.50       2.10     HPCL                                  AAA            2074.09            1.73
                                        Tata Industries                      N.R        2500.00       2.09
                                                                                                               Indian Railways Financial
                                        Kotak Mahindra Primus                P1+        2381.75       1.99
Investment Style                                                                                               Corporation (GECSI) - PTC          AAA (SO)          2060.56            1.72
                                        Hindustan Lever                      AAA        2162.78       1.81
                                                                                                               SBI                                   AAA            1134.30            0.95
The fund manager strives to provide     HDFC                                 AAA        2054.95       1.72
a steady stream of income while                                                                                Power Grid Corporation                AAA                  86.60        0.07
                                        GE Capital Services                  P1+        1999.60       1.67
avoiding interest rate volatility.                                                                             Total PSU/PFI Bonds                                24286.35            20.27
                                        Indian Retail - PTC               MAAA (SO)     1977.48       1.65
                                        HDFC Bank - PTC                    AAA (SO)     1821.51       1.52     GOI 07.55% 2010                       SOV            2278.00            1.90
Investment objective
                                        Maruti Udyog                        LAAA        1634.40       1.36     GOI 09.39% 2011                       SOV            2277.72            1.90
Seeks to provide stable returns by      HDFC                                 P1+        1533.45       1.28     GOI 06.96% 2009                       SOV            2171.20            1.81
investing in shorter term fixed
                                        Exide Industries                    MAAA        1522.50       1.27     GOI 11.30% 2010                       SOV            1347.30            1.12
income securities.
                                        Ashok Leyland Finance                P1+        1499.85       1.25     GOI 11.98% 2004                       SOV                 264.39        0.22
Date of Allotment                       Grasim Industries                    AAA        1039.95       0.87
                                                                                                               Total Gilts                                          8338.61            6.95
                                        Sundaram Finance                    MAAA        1028.40       0.86
January 31, 2002                                                                                               Mangalore Refineries *                A1+            3500.00            2.92
                                        Citicorp Maruti Finance             LAAA        1004.90       0.84
                                        M&M Financial Services               P1+        1002.10       0.84     IL&FS                                 AAA            1000.00            0.85
Fund Manager                                                                                                   IL&FS                                 PR1+                500.00        0.42
                                        Mumbai Auto
Shobhit Mehrotra                        Receivables Trust - PTC            AAA (SO)      586.84       0.49     Electrosteel Castings                 P1+            1000.00            0.83
                                        Indian Rayon                         AAA         556.50       0.46     Total Mibor
Latest NAV                              Ashok Leyland                        AA-         517.90       0.43     Linked Instruments                                   6000.00            5.02
Growth Plan             Rs. 1146.5541   TISCO                                AAA         511.85       0.43
                                                                                                               ICICI Bank *                          PR1+           3333.53            2.78
Weekly Plan             Rs. 1090.9035   Associates India
                                                                                                               91 Days Treasury Bills                SOV                 997.53        0.83
                                        Financial Services                   P1+         486.50       0.41
Monthly Plan            Rs. 1025.6491
                                        GE Shipping                          AAA         105.90       0.09     Money Market Instruments                             4331.06            3.61
Quarterly Plan          Rs. 1022.8944                                                                          Call, Cash & Other Assets                           14097.02           11.74
                                        IL&FS                                AAA          53.46       0.05
Bonus                   Rs. 1049.0254                                                                          Net Assets                                        119816.79           100.00
                                        Total Corporate Debt                           62763.75      52.41
Fund Size                               # Including erstwhile Indo Gulf Corporation’s debentures              * Top 10 holdings
Rs.1198.17 crores
                                        Portfolio Composition and Performance
Modified Duration

1.34 years                               Fu nd M an a g e r ’ s C o m m e n ta r y                              NAV Pe r f o r m a n c e
                                                                                                                                         Last    Last     Last    Last     Since
Expense Ratio                                 The maturity period of the fund was decreased                                            1 month 3 months 6 months 1 year inception*
                                         marginally to 1.53 years from 1.57 years during the last
0.90%                                                                                                          TISTIP                   0.19%      1.04%       2.87%        6.39%     7.78%
                                         N AV The r m a additions to the corporate bond
                                         month. Per f omain n c e
                                         portfolio were the pass through certificates of LIC                   Crisil Short-Term
Minimum Investment/Muliples for
New Investors                            Housing Finance and debentures of GE Capital                          Bond Fund Index          -0.02%     1.00%       2.54%        5.33%         N.A
                                         Services. The other additions were debentures of IL&FS               *Compounded and annualised
Rs.1 lakh /1000                                                                                                Past performance may or may not be sustained in future.
                                         and GOI 11.98% 2004.
Additional Investment/Multiples for                                                                             NAV M o v e m e n t ( s i n c e i nc e pt ion)
Existing Investors

Rs.1 lakh /1000
                                         Composition by assets
Load Structure

Entry Load        NIL
Exit Load         NIL




                                                  s       Corporate Debt                   52.41%
                                                                                                                              Average maturity                      Yield to maturity
                                                  s       PSU/PFI Bonds                    20.27%
                                                  s       Mibor Linked Instruments          5.02%
                                                                                                                Bond                   1.27 years                                 5.61%
                                                  s       Money Market Instruments          3.61%
                                                  s       Call, Cash & Other Assets        11.74%               Fund                   1.53 years                             5.39%*
                                                  s       Gilts                             6.95%

                                                                                                                                                                             * Pre-fund expenses

                                                                                                                                                                                                   31
         Templeton India Treasury Management Account                                                                                                 TITMA
                                               Portfolio
     As of November 28, 2003
                                               Company Name                    Rating     Market Value    % of     Company Name                     Rating    Market Value        % of
                                                                                           Rs. Lakhs     Assets                                                Rs. Lakhs         Assets
                  Fund Category
                                               Reliance Industries *           AAA          3543.20       2.66     IL&FS                             P1+         1922.77           1.44
                                               Kotak Mahindra Investments       A1+         2500.00       1.87     GE Capital Services               P1+         1900.76           1.42
                                               IL&FS                           AAA          2370.00       1.78
                                                                                                                   Citicorp Finance                  P1+         1461.35           1.09
                                               Indian Retail - PTC          A1+ (SO)        2273.16       1.70
                                                                                                                   Bharti Televentures               P1+         1300.05           0.97
                                               Kotak Mahindra Primus            P1+         2000.60       1.50
                                               GE Capital Services             AAA          2000.00       1.50     Cholamandalam                     P1+           948.68          0.71

                                               Cholamandalam Investment         P1+         2000.00       1.50     IDBI                              P1+           945.41          0.71

     Investment Style                          Ashok Leyland Finance            P1+         1958.20       1.47     Money Market
                                               Kotak Mahindra Bank              P1+         1502.10       1.13     Instruments                                  35540.27          26.61
     The fund manager strives to strike an
     optimum balance between steady            GE Shipping                     AAA          1011.10       0.76     Finolex Industries *              P1+         4000.00           3.00
     income and high liquidity through a       Mumbai Auto
     judicious mix of fixed and floating                                                                           INDAL *                           P1+         3500.00           2.62
                                               Receivables Trust - PTC        P1+ (SO)       871.62       0.65
     rate debt instruments.
                                               GE Capital Transportation                                           GE Capital Services               AAA         2500.00           1.87
     Investment objective                      Financial Services - PTC       P1+ (SO)       723.78       0.54
                                                                                                                   Kotak Mahindra Primus             P1+         2500.00           1.87
                                               Tata Motors - PTC            AAA (SO)         440.75       0.33
     Seeks to provide current income                                                                               Bayer                             P1+         2500.00           1.87
     along with high liquidity.                PFSL - Cholamandalam PTC AAA (SO)             323.12       0.24
                                                                                                                   IDBI                              AA+         2000.00           1.50
                                               Kotak Mahindra Bank - PTC AAA (SO)            228.25       0.17
     Date of Allotment
                                               Total Corporate Debt                        23745.88      17.80     Citicorp Finance                  P1+         1500.00           1.12
     April 29, 1998
                                               IDBI *                           AA+         3004.20       2.25     Ford Credit Kotak Mahindra        P1+         1500.00           1.12
     Fund Manager                              Hudco                            AA-          503.50       0.38
                                                                                                                   Associates India
     Shobhit Mehrotra                          Total PSU/PFI Bonds                          3507.70       2.63     Financial Services                P1+         1000.00           0.75
                                               HDFC *                           P1+         6748.36       5.05
     Latest NAV                                                                                                    Madras Cements                    P1+         1000.00           0.75
                                               Ashok Leyland Finance *          P1+         4363.16       3.27
     Growth Plan        Rs. 1557.7778                                                                              IL&FS                             AAA           500.00          0.37
                                               ICICI Bank *                    PR1+         3847.04       2.88
     Annual Plan        Rs. 1184.1589                                                                              Total Mibor
     Weekly Plan        Rs. 1244.9809          UTI Bank *                       A1+         3433.77       2.57
     Daily Dividend     Rs. 1511.9627                                                                              Linked Instruments                           22500.00          16.84
                                               Kotak Mahindra Bank *            P1+         3327.44       2.49
     Bonus Plan         Rs. 1401.2144                                                                              Call, Cash & Other Assets                    48107.73          36.12
                                               Tata Sons *                      P1+         2850.17       2.14
     Fund Size                                 Power Finance Corporation        P1+         2491.31       1.87     Net Assets                                 133401.58         100.00
     Rs. 1334.02 crores
                                                                                                                  * Top 10 holdings
     Maturity & Yield
                                               Portfolio Composition and Performance
                  Avg Maturity     YTM
      Bond         0.13 years      5.08%
                                                Fu nd M an a g e r ’ s C o m m e n ta r y                              NAV Pe r f o r m a n c e
      Fund         0.19 years     5.15%*
                         * Pre fund expenses                                                                                               Last    Last     Last      Last     Since
                                                     The maturity period of the fund decreased
                                                                                                                                          7 days 15 days 1 month** 3 months**inception*
     Modified Duration                          marginally to 0.19 years during the month. The inflows
                                                received in the fund were deployed judiciously and the             TITMA (G)              0.09%   0.19%      4.60%     4.85%      8.26%
     0.19 years
                                                main additions to the portfolio have been IL&FS, Ashok             Crisil Liquid
     Expense Ratio                              Leyland Finance and money market instruments of HDFC               Fund Index             0.10%   0.21%      4.60%     4.27%       N.A
                                                and T-Bills.                                                       Annualised
                                                                                                                  **                                             *
                                                                                                                                                                   Compounded and annualised
     0.75%                                                                                                         Past performance may or may not be sustained in future

     Minimum Investment/Multiples for
     New Investors

     Rs.1 lakh /1000

     Additional Investment/Multiples for
                                                Composition by Assets                                                  NAV M o v e m e n t ( s i n c e i nc e pt ion)
     Existing Investors

     Rs.1 lakh /1000

     Load Structure

     Entry Load          Nil
     Exit Load           Nil




                                                        s     Corporate Debt                   17.80%
                                                        s     PSU/PFI Bonds                      2.63%
                                                        s     Mibor Linked Instruments         16.84%
                                                        s     Money Market Instruments         26.61%
                                                        s     Call, Cash & Other Assets        36.12%



32
    Templeton India Liquid Fund                                                                                                                                     TILF
                                        Portfolio
As of November 28, 2003
                                            Company Name                     Rating    Market Value      % of         Company Name                    Rating     Market Value     % of
                                                                                        Rs. Lakhs       Assets                                                    Rs. Lakhs      Assets
             Fund Category
                                            Kotak Mahindra Primus *            P1+       2975.08          4.94        Associates India
                                                                                                                      Financial Services                   P1+     1000.00            1.66
                                            Bharti Televentures *           A1+ (SO)     2928.73          4.86

                                                                                                                      Sundaram Finance                     P1+     1000.00            1.66
                                            Associates India
                                            Financial Services                 P1+       1001.02          1.66
                                                                                                                      Total Mibor

                                            Ashok Leyland Finance              P1+        979.10          1.62        Linked Instruments                          14200.00           23.57
Investment Style
                                            Citifinancial Retail Services    MAAA         303.00          0.50        HDFC *                               P1+     2860.68            4.74
The Fund Managers strive to provide
optimum returns with prudent
exposure      to   money    market          Tata Motors - PTC               AAA (SO)      261.34          0.43
instruments while maintaining focus                                                                                   UTI Bank *                           A1+     2483.78            4.12
on capital preservation
                                            Reliance Industries                AAA        257.44          0.43
Investment Objective                                                                                                  ICICI Bank *                         A1+     2451.99            4.07
                                            Total Corporate Debt                         8705.72        14.44
Seeks to provide income and liquidity
through investments in high quality                                                                                   91 Days Treasury Bills *             SOV     1996.95            3.31
money market and debt instruments           IDBI                               AA+       1002.10          1.66

Date of Allotment                                                                                                     Ashok Leyland Finance                P1+     1482.34            2.46
                                            Total PSU/PFI Bonds                          1002.10          1.66
June 17, 1998
                                            Madras Cements *                   P1+       3200.00          5.31        Bharti Televentures                  P1+     1433.09            2.38
Fund Manager
Shobhit Mehrotra
                                            IL&FS *                            PR1+      2500.00          4.15        M&M Financial Services               P1+      992.25            1.65
Latest NAV
                                            Bayer India *                      P1+       2500.00          4.15
Growth Plan               Rs. 15.4928                                                                                 Total Money
Dividend Plan             Rs. 10.0061
Daily Dividend            Rs. 10.0000       Finolex Cables *                   P1+       2000.00          3.32        Market Instruments                          13701.09           22.73

Fund Size
                                            IDBI                               AA+       1000.00          1.66        Call, Cash & Other Assets                   22664.09           37.60
Rs. 602.73 crores

Average Maturity                            IL&FS                              AAA       1000.00          1.66        Net Assets                                  60273.01       100.00
Bond               0.16 years                                                                                                                                            * Top 10 holdings
Fund               0.16 years           Portfolio Composition and Performance
Yield to Maturity
5.32% (Pre-fund expenses)                    Fu nd M an a g e r ’ s C o m m e n ta r y                                 Composition by Assets
Modified Duration
                                                  The maturity period of the fund has decreased
0.16 years
                                             N AV Per to 0.16 c e
                                             marginally f o r m a nyears during the month. The main
Expense Ratio                                additions to the portfolio have been Bharti Televentures,
1.00%                                        Ashok Leyland Finance and money market instruments of
                                             IL&FS, and Finolex Cables.
Minimum Investment/Multiples for
New Investors
                                             N AV Per f o r m a n c e
Growth Plan &                                                                                                               s   Corporate Debt                           14.44%
Dividend Plan         Rs.25,000/1000                         Last    Last     Last      Last      Since                     s   Mibor Linked Instruments                 23.57%
Daily Dividend                                              7 days 15 days 1 month** 3 months**inception*                       Money Market Instruments                 22.73%
                                                                                                                            s
Reinvestment Plan Rs. 1 lakh/1000           TILF (G)        0.09%      0.18%     4.53%      4.70%       8.36%                   Call, Cash & Other Assets                37.60%
                                                                                                                            s
Additional Investment/Multiples for         TILF (D)        0.08%      0.18%     4.52%      4.70%       8.15%               s   PSU/PFI Bonds                                1.66%
Existing Investors                          Crisil Liquid
                                            Fund Index      0.10%      0.21%     4.60%      4.27%         N.A
Growth Plan &
Dividend Plan         Rs.5000/1000      *
                                         Annualised                                    **
                                                                                          Compounded and annualised
                                        Dividends declared assumed to be reinvested
Daily Dividend                          Past performance may or may not be sustained in future                         NAV M o v e m e n t ( s i n c e i n c e pt ion)
Reinvestment Plan Rs. 1 lakh/1000
                                             Composition by Rating
Load Structure
Entry Load          NIL
Exit Load           NIL




                                                    s AAA/P1+/P1+(SO)/PR1+/A1+ 96.68%
                                                    s AA/AA+/AA-                3.32%



                                                                                                                                                                                             33
           Templeton India Money Market Account                                                                                                                            TIMMA
                                                              Portfolio
     As of November 28, 2003
                                                                 Company Name                                           Rating                  Market Value (Rs.Lakhs)                     % of Assets
                       Fund Category
                                                                ICICI Bank                                                PR1+                              501.97                              96.17
                                                                Money Market Instruments                                                                    501.97                              96.17
                                                                Call, Cash & Other Assets                                                                    19.99                                  3.83
                                                                Net Assets                                                                                  521.96                            100.00

     Investment Style                                         Portfolio Composition and Performance
     The fund manager seeks to achieve capital
     preservation alongwith current income through a
     portfolio of money market instruments                      Fu nd M an a g e r ’ s C o m m e n ta r y                                       NAV Pe r f o r m a n c e
     Investment Objective                                                                                                                                       Last     Last      Last       Last     Since
                                                                    The exposure to call and other current assets
     Seeks to provide investors with high safety, a high                                                                                                      15 days 1 month** 3 months** 1 year** inception*
     degree of liquidity and current income through             decreased to 3.83% during the month
     investment in high quality money market instruments.                                                                                   TIMMA             0.24%        5.73%      5.74%         5.91%      9.02%
     Date of Allotment:         March 17, 1997                                                                                              Crisil Liquid
     Fund Manager:              Shobit Mehrotra                                                                                             Fund Index        0.21%        4.60%      4.27%         4.72%       N.A
     NAV:                       Re. 1 (Constant)
     Fund Size:                 Rs. 5.22 crores                                                                                             Annualised
                                                                                                                                           **                                             *
                                                                                                                                                                                            Compounded and annualised
                                                                                                                                            Past performance may or may not be sustained in future
     Expense Ratio:             1.00%
                                                                Composition by assets
     Minimum Investment/Multiples for New Investors                                                                                             Rs. 10000 invested at inception in TIMMA
     Regular Account         Rs.5000/1000
     Cheque Writing          Rs.10,000/1000                                                                                                                                                             Rs. 17,839

     Additional Investment/Multiples for Existing Investors
     Rs.1000/1000 (for all plans)
     Load Structure
     Entry Load                 NIL
     Exit Load                  NIL
     Lock-in Period             15 days from the
                                date of allotment
                                                                  s Money market instruments                 96.17%
                                                                  s Call, Cash & Other Assets                  3.83%




            Franklin India International Fund                                                                                                                                      FINTF
                                                              Portfolio
     As of November 28, 2003
                                                                  Company Name                                         Rating     Market Value (Rs Lakhs)              Market Value ($)              % of Assets
                          Fund Category

                                                               Investment in Foreign Mutual Fund

                                                               Franklin US Government Fund                              AAA              243.12                         529205.65                    101.58

                                                               Call, Cash and Other Assets                                                -3.79                          -8240.49                     -1.58

                                                               Net Assets                                                                239.33                         520965.16                    100.00
     Investment objective
     Seeks to provide returns by investing predominantly in
     overseas mutual fund, which primarily invest in          Portfolio Composition and Performance
     securities issued or backed by the US Government. The
     scheme invests in units of Franklin US Government
     Fund, that invests predominantly in Ginnie Maes
     securities (backed by the US Government).                  Fu nd M a n a g e r ’ s C o m m e n ta r y                                      Values as on 31.10.2003
     Date of allotment:          Dec 20, 2002                    N AV Pe r f o r m a n c e                                                       NAV of FINTF                              Rs. 9.6275
     Fund Manager:               Nilesh Shah                    The scheme was fully invested at the end of the month
     Fund Size:                  Rs. 2.39 crores                                                                                                 NAV of Franklin US Govt. Fund             US $ 9.91
     Expense Ratio:              0.90%                                                                                                           1 US $                                    Rs. 45.94
     Minimum investment/Multiples for
     New investors:         Rs.1 lakh/ 5000
     Additional investment/Multiples for
     existing investors:      Rs.1 lakh/ 5000                   N AV Per f o r m a n c e                                                        Pe r f o r m a n c e
     Load Structure                                                            Last          Last            Last            Since                                       Last    Last     Last      Since
     Entry Load              NIL                                             1 month       3 months        6 months       20.12.2002                                   1 month 3 months 6 months 20.12.2002
     Exit Load               Rs.10 lakhs & below - 0.5%,       FINTF         1.38%          1.15%           -2.85%            -3.73%        Franklin US                0.15%       1.14%     -0.39%           1.03%
                             if redeemed within 6 months                                                                                    Government Fund
                             of allotment.                    Past performance may or may not be sustained in future
                             Above Rs.10 lakhs -
                                                                                                                                            Rupee vis-a-vis US $ -1.37%          -0.20%      2.32%            4.39%
                             0.25%, if redeemed within                                                                                     Past performance may or may not be sustained in future
                             3 months of allotment



34
                                                              DIVIDEND/BONUS HISTORY

Record Date                              Dividend Rate           Rate per            NAV*                Record Date                             Dividend Rate           Rate per       NAV*
                                         /Bonus Ratio            unit (Rs.)          (Rs.)                                                       /Bonus Ratio            unit (Rs.)     (Rs.)
FIBCF**                                                                                                  Jun 25, 2002                             0.80%                   0.080           10.39
Jan 01, 1997                                 20%                   2.00                 12.03            May 24, 2002                             0.80%                   0.080           10.39
Jul 30, 1999                                 35%                   3.50                 30.17            Apr 24, 2002                             0.80%                   0.080           10.45
Mar 14, 2000                            65% /1:1 bonus             6.50                 50.38            Mar 20, 2002                             0.80%                   0.080           10.43
Nov 10, 2000                                 25%                   2.50                 16.85            Feb 25, 2002                             0.80%                   0.080           10.50
Mar 09, 2001                               22.50%                  2.25                 14.08            Jan 25, 2002                             0.80%                   0.080           10.46
Mar 18, 2002                                 10%                   1.00                 12.93            Dec 24, 2001                             1.30%                   0.130           10.48
Jul 30, 2003                                 20%                   2.00                 15.45            Nov 23, 2001                             0.80%                   0.080           10.51
                                                                                                         Oct 25, 2001                             0.80%                   0.080           10.41
TIGF**                                                                                                   Sep 25, 2001                             0.80%                   0.080           10.34
Apr 28, 2000                                  15%                  1.50                 14.45            Aug 24, 2001                             0.80%                   0.080           10.45
Sep 16, 2003                                  20%                  2.00                 20.48            Jul 25, 2001                             0.80%                   0.080           10.44
                                                                                                         Jun 25, 2001                             0.80%                   0.080           10.40
FIPP**                                                                                                   May 25, 2001                             0.75%                   0.075           10.35
Sep 10, 1999                                  20%                  2.00                 18.83            Apr 25, 2001                             0.75%                   0.075           10.30
Oct 13, 2000                                  30%                  3.00                 17.41            Mar 23, 2001                             0.75%                   0.075           10.25
Jan 19, 2001                                  25%                  2.50                 16.79            Feb 23, 2001                             0.75%                   0.075           10.27
Mar 18, 2002                                  20%                  2.00                 15.36            Jan 25, 2001                             0.60%                   0.060           10.23
Aug 19, 2003                                  20%                  2.00                 18.10            Dec 22, 2000                             0.60%                   0.060           10.19
                                                                                                         Nov 24, 2000                             0.60%                   0.060           10.16
FIPF**                                                                                                   Oct 25, 2000                             0.60%                   0.060           10.12
Nov 03, 1999                                  30%                  3.00                 26.34            Sep 25, 2000                             0.60%                   0.060           10.10
Sep 22, 2000                                  30%                  3.00                 18.93            Aug 25, 2000                             0.60%                   0.060           10.08
Jan 17, 2001                                  25%                  2.50                 15.27            Jun 23, 2000                             0.60%                   0.060           10.09
Mar 18, 2002                                  30%                  3.00                 16.78            May 25, 2000                             0.70%                   0.070           10.10
Jun 27, 2003                                  25%                  2.50                 20.73            Apr 25, 2000                             0.85%                   0.085           10.12
                                                                                                         Mar 25, 2000                             0.85%                   0.085           10.05
FIT**                                                                                                    $ (Regular dividend @ 0.75% & Bonus dividend @ 0.50%)

Mar 31, 2000                                  80%                  8.00                 31.02            (Quarterly Dividend)
May 24, 2000                                  60%                  6.00                 19.82            Sep 26, 2003                                1.50%                0.150         10.4359
Mar 30, 2001                                 12.50%                1.25                 11.57            Jun 25, 2003                                1.50%                0.150         10.3932
                                                                                                         Mar 25, 2003                                2.00%                0.200         10.3395
FTIBF**
                                                                                                         Dec 24, 2002                                2.75%¶               0.275         10.5456
Nov 25, 2003                                  15%                  1.50                 13.99            Sep 25, 2002                                2.25%                0.225         10.5194
                                                                                                         Jun 25, 2002                                2.25%                0.225           10.43
TIPP**                                                                                                   Mar 20, 2002                                3.50%                0.350           10.62
Dec 31, 1997                                  12%                  1.20                 11.31            Dec 24, 2001                                3.75%$               0.375           10.75
Dec 14, 1998                                  12%                  1.20                 11.46            ¶(Regular   dividend @2.25% & Bonus dividend @0.50%)
Mar 16, 2000                                  12%                  1.20                 12.41            $(Regular   dividend @2.25% & Bonus dividend @1.50%)
Jul 13, 2001                                  12%                  1.20                 12.09
Mar 22, 2002                                  10%                  1.00                 11.72            Sep 25, 2001                                2.25%                0.225           10.58
                                                                                                         Jun 25, 2001                                2.25%                0.225           10.61
FIBF**                                                                                                   Mar 23, 2001                                2.00%                0.200           10.45
Nov 25, 2003                                  15%                  1.50                 14.76            Dec 22, 2000                                2.00%                0.200           10.38
                                                                                                         Sep 25, 2000                                0.65%                0.065           10.11
TIIF•                                                                                                    Jun 23, 2000                                2.50%                0.250           10.33
(Quarterly Dividend)                                                                                     (Half-yearly Dividend)
Sep 26, 2003                              2.00%                  0.200               11.5277             Sep 26, 2003                                3.50%                0.350         11.4354
Jun 13, 2003                             1.775%                  0.1775              11.3812             Mar 25, 2003                                4.00%                0.400         10.6781
Mar 17, 2003                             2.00%                   0.200               11.0733             Sep 25, 2002                                5.00%                0.500         10.7446
Dec 13, 2002                             4.50%¶                  0.450               11.4844             Mar 20, 2002                                7.00%                0.700           11.12
¶ (Regular dividend @ 2.25% & Bonus dividend @ 2.25%)                                                    Sep 25, 2001                                2.50%                0.250           10.44
                                                                                                         Mar 23, 2001                                2.50%                0.250           10.34
TIIBA                                                                                                    Sep 25, 2000                                3.00%                0.300           10.39
(Annual Dividend)•
                                                                                                         FTIMIP
Mar 28, 2003                                  10%                  1.00              11.7264
(Half Yearly Dividend)•                                                                                  (Monthly Dividend)#
Sep 26, 2003                                 4.50%                 0.45              15.4362             Nov 28, 2003                                0.79%                0.079         11.5527
Mar 28, 2003                                 5.00%                 0.50              14.7945             Oct 31, 2003                                0.79%                0.079         11.5303
                                                                                                         Sep 26, 2003                                0.79%                0.079         11.3525
(Monthly Dividend)#
Nov 28, 2003                                 0.79%                0.079              15.1237             (Quarterly Dividend)•
Oct 31, 2003                                 0.79%                0.079              15.2637             Sep 26, 2003                              2.25%                  0.225         11.5426
Sep 26, 2003                                 0.79%                0.079              15.2057             Jun 27, 2003                              2.20%                  0.220         11.1507
                                                                                                         Mar 28, 2003                              2.25%                  0.225         10.8746
(Quarterly Plan)•                                                                                        Dec 27, 2002                              3.00%$                 0.300         11.2067
Sep 26, 2003                             2.25%                    0.225              15.1700             $ (Regular dividend @ 2.25 % & Bonus dividend @ 0.75%)
Jun 27, 2003                             2.20%                    0.220              14.9768
Mar 28, 2003                             2.50%                     0.25              14.5364             TGSF•
Dec 27, 2002                             6.00%$                    0.60              15.2019
$ (Regular dividend @ 3% & Bonus dividend @ 3%)                                                          (Quarterly Dividend)
                                                                                                         Sep 26, 2003                             2.50%                   0.250         12.1397
TIIBA - Institutional Plan                                                                               Jun 13, 2003                             2.22%                   0.222         11.8381
                                                                                                         Mar 17, 2003                             2.50%                   0.250         11.2658
Sep 26, 2003                                 2.25%                0.225              10.9862
                                                                                                         Dec 13, 2002                            7.50%¶                   0.750         11.8275
Jun 27, 2003                                 5.32%                0.532              11.2277             ¶(Regular dividend @ 2.50% & Bonus dividend @ 5.00%)

TMIP **
                                                                                                         TGSF (TP)•
(Monthly Dividend)
                                                                                                         Sep 26, 2003                             1.25%                   0.125         10.7993
Nov 28, 2003                                 0.44%                0.044              10.3776
                                                                                                         Jun 13, 2003                             1.33%                   0.133         10.6227
Oct 31, 2003                                 0.44%                0.044              10.4242
                                                                                                         Mar 17, 2003                             1.50%                   0.150         10.3515
Sep 26, 2003                                 0.44%                0.044              10.4196
                                                                                                         Dec 13, 2002                            3.00%$                   0.300         10.6127
Aug 25, 2003                                 0.44%                0.044              10.3836             $(Regular dividend @ 2.00% & Bonus dividend @ 1.00%)
Jul 25, 2003                                 0.44%                0.044              10.3622
Jun 25, 2003                                 0.44%                0.044              10.3564             FTIGF
May 23, 2003                                 0.44%                0.044              10.3611
Apr 25, 2003                                 0.53%                0.053              10.3388             Liquid Plan (Monthly Dividend)#
Mar 25, 2003                                 0.60%                0.060              10.2712             Nov 28, 2003                             0.45%                   0.045         10.3190
Feb 25, 2003                                  0.60%               0.060              10.2508             Oct 31, 2003                             0.45%                   0.045         10.3398
Jan 24, 2003                                  0.75%               0.075              10.4259             Sep 26, 2003                             0.45%                   0.045         10.3492
Dec 24, 2002                                 1.25%$               0.125              10.4621             Investment Plan (Quarterly Dividend)•
Nov 25, 2002                                 0.75%                0.075              10.4743             Sep 26, 2003                             2.50%                   0.250         11.8245
Oct 25, 2002                                 0.80%                0.080              10.4426             Jun 27, 2003                             2.70%                   0.270         11.6304
Sep 25, 2002                                 0.80%                0.080              10.4462             Mar 28, 2003                             3.00%                   0.300         11.0494
Aug 23, 2002                                 0.80%                0.080                10.44             Dec 27, 2002$                            7.00%                   0.700         11.6088
Jul 25, 2002                                 0.80%                0.080                10.44             $(Regular dividend @ 3.50% & Bonus dividend @ 3.50%)


                      • Past 12 months dividend history * Cum-dividend NAV # Past 3 months dividend history ** Since inception Past performance may or may not be sustained in future
                                                                                                                                                                                                  35
                                       Dividend distribution tax is taken into consideration wherever applicable while calculating the NAV performance
For more information please contact:

 Ahmedabad                  Banashree (079) 6470056, 6401947                                          Lucknow                      Manish (0522) 285301, 285172

 Bangalore                  Deepthi (080) 238 5612/14                                                     Ludhiana                  Sanjeev (0161) 2406191, 2406198

     Baroda                  Nisarg (0265) 2225426, 2225427                                                Madurai                   Thiru (0452) 2343008, 98942 63298

     Bhubaneswar             Sujata (0674) 2535141, 2531745                                                Mangalore                 Poornima (0824) 2492796, 98456 82135

     Chandigarh              Ranjan (0172)662136, 622341                                               Mumbai                       Sameera (022) 56325820-36, 22886706
                                                                                                           Nagpur                    Bhawani (0712) 2555074, 2553794
 Chennai                    Nandini (044) 24679203, 24679204
                                                                                                           Nashik                    Evellyn (0253) 2574327/2574329
     Cochin                  Bertram (0484) 2335096/2334865
                                                                                                           Patna                     Alok Trivedi (0612) 2212277/2213170
     Coimbatore              Sheshadri (0422) 2474616, 2470277
                                                                                                       Pune                         Nilima (020) 5533140/1, 5513660/1
     Dehradun                Ajeet (0135) 2743268, 2748306
                                                                                                           Raipur                    Sharique (0771) 5033614/5033244
 Delhi                      Meera/Rumi (011) 23738670 (D), 23752017
                                                                                                           Rajkot                    Alpa (0281) 2294204/2471395
 Hyderabad                  Pooja (040) 55665915, 55665916
                                                                                                           Salem                     Balaji (0427) 2446854/9894246854
     Indore                  Bhavna (0731) 2526710, 2526711
                                                                                                           Surat                     Nimesh (0261) 2473766
     Jaipur                  Heera (0141) 2377904, 2377905                                                 Trichy                    Senthi Kumar (0431) 2464022, 98424 14691
     Jalandhar               Jatinder (0181) 5080783, 5080784                                              Varanasi                  Pradeep (0542) 2226684
 Kanpur                     Vineet (0512) 2303131, 2330767                                                Vijayawada                Srinivas (0866) 2472594/5561301
 Kolkata                    Sujata (033) 22824171 / 22826517                                              Visakhapatnam             Sujatha (0891) 5565351/2704705

                                                                                                                     Round the clock NAV on 96274 96274 in these cities.




                                                                                                                                                 Registered Office:
                                                                                                                                                 Templeton Asset Management (India) Pvt. Ltd.,
                                                                                                                                                 Sakhar Bhavan, 1st floor,
                                                                                                                                                 230 Backbay Reclamation,
                                                                                                                                                 Nariman Point, Mumbai - 400 021.
                                                                                                                                                 www. franklintempletonindia.com




                                                     For further information you can mail us at service@templeton.com

Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAVs of the schemes may go up or down depending upon the factors and forces affecting
the securities market including the fluctuations in the interest rates. There can be no assurance that schemes’ investment objectives will be achieved. The past performance of the mutual
funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the schemes. Templeton India Growth Fund, Franklin India
Growth Fund, Franklin India Index Fund, Franklin India Balanced Fund, Franklin India Index Tax Fund, Templeton India Income Fund, Templeton Monthly Income Plan, Templeton India
Government Securities Fund, Templeton Floating Rate Income Fund and Templeton India Liquid Fund, Franklin India Bluechip Fund, Franklin India Prima Plus, Franklin India Prima Fund,
Franklin India Taxshield, FT India Index Fund, Franklin Infotech Fund, Franklin FMCG Fund, Franklin Pharma Fund, Franklin Internet Opportunities Fund, Franklin India Balanced Fund,
Templeton India Pension Plan, Franklin India International Fund, Templeton India Income Builder Account, FT India Monthly Income Plan, FT India Gilt Fund, Templeton India Short-
Term Income Plan, Templeton India Treasury Management Account, Templeton India Money Market Account, FT India PE Ratio Fund, FT India Asset Allocation Fund, are only the
names of the schemes and do not in any manner indicate the quality of the schemes, their future prospects or returns. In Franklin India International Fund, the investments made by
the scheme in the US Fund are subject to external risks including currency risk, downgrade risk of US Government debt. The investment in the US fund will be restricted to the statutory
limits. In Franklin Infotech Fund, Franklin FMCG Fund, Franklin Pharma Fund, Franklin Internet Opportunities Fund, the diversification is restricted to the respective sectors as a result
of which, the movement in the NAV may be more volatile compared to schemes with a more diversified portfolio. Templeton Monthly Income Plan and FT India Monthly Income Plan
are open end schemes with no assured returns. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes. The Mutual Fund is also not assuring that
it will make any dividend/bonus distributions under the dividend/bonus plans of the schemes though it has every intention of doing so. All dividend/bonus distributions are subject
to the investment performance of the schemes. The investments made by the schemes are subject to external risks on transferring, pricing, trading volumes, settlement risks etc. of
securities and hence redemptions may be delayed inordinately. The schemes may invest in various derivative instruments including Index futures, which are untested instruments in
Indian Markets and may carry high risk return ratio and may also invest in overseas instruments which is subject to forex fluctuation risks. In the cases of Franklin India Index Fund,
Franklin India Index Tax Fund (FITF) and FT India Index Fund, the existence, accuracy and performance of the S&P CNX Nifty Index will directly affect the schemes performance and
tracking errors are inherent in any Index Fund. The tracking errors in FITF are expected to be around 2% per annum but may vary substantially due to several factors. All subscriptions
in Franklin India Index Tax Fund, Franklin India Taxshield and Templeton India Pension Plan are subject to a lock-in-period of 3 years and the unitholder cannot redeem, transfer,
assign or pledge the units from the date of allotment. The Trustee, AMC, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the
event that the Scheme is wound up before the completion of the lock-in period. In the case of hybrid funds, in the event that the investible funds of more than 50% of the total proceeds
of the scheme are not invested in equity shares, then tax exemption on income distribution may not be available to the fund. Investors are requested to consult tax professionals for
specific tax, legal and financial implications of the investment/participation/ disinvestment in the schemes. All returns are computed without considering sales charge. Please call the
Templeton Investor Service Centre numbers to obtain a copy of the offer document and go through the same before investing. Statutory Details: Templeton Mutual Fund in India has
been set up as a trust by Templeton International Inc. (liability restricted to the seed corpus of Rs.1 lac) with Templeton Trust Services Pvt. Ltd. as the Trustee (Trustee under the Indian
Trust Act 1882) and with Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager. The Fund offers NAVs, purchases and redemptions on all business days.

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